MicroStrategy Stays on Bitcoin Course Despite Spot ETF Approval: Saylor


Michael Saylor likened his firm, MicroStrategy, to a “sportscar” in terms of providing Bitcoin exposure to investors. On the other hand, he compared a spot ETF to a “supertanker” in the same context.

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The analogy highlights the agility and speed of MicroStrategy’s approach compared to the slower and larger nature of a spot ETF for Bitcoin investment.

MicroStrategy to Maintain Appeal for Bitcoin Exposure Despite ETF Approvals

Michael Saylor, the co-founder of MicroStrategy, believes that his company will continue to be an attractive option for investors seeking exposure to Bitcoin, even if spot ETFs (Exchange-Traded Funds) are approved in the future. He reaffirmed the company’s commitment to adding more Bitcoin to its balance sheet, potentially using the proceeds from a planned $750 million share sale.

During an interview with Bloomberg on August 2, Saylor expressed confidence that MicroStrategy’s offering would remain unique and distinctive compared to spot Bitcoin ETFs. He emphasized that the firm would continue to provide something that spot Bitcoin ETFs cannot replicate.

MicroStrategy Sees Itself as Unique Compared to Future Spot Bitcoin ETFs

During the earnings call on August 1, Michael Saylor reiterated that MicroStrategy’s Bitcoin operating strategy would remain distinctive even with the arrival of spot ETFs. He emphasized the company’s differentiation and expressed confidence in maintaining its appeal to investors.

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Since starting its purchasing strategy for Bitcoin in August 2020, MicroStrategy has witnessed a 145% increase in the cryptocurrency’s value. Saylor mentioned that the company utilizes leveraged investments to generate yields that are passed on to shareholders. Being an operating company, MicroStrategy can tap into leverage, offering benefits to the entire ecosystem, unlike an ETF.

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On the other hand, Saylor acknowledged that spot Bitcoin ETFs would attract large hedge funds and sovereign entities with significant capital into the cryptocurrency space. He compared MicroStrategy’s role to that of a sportscar, agile and unique, while spot ETFs would act as supertankers, accommodating another set of customers and contributing to the overall growth of the asset class.

As of now, MicroStrategy boasts over 470 institutional shareholders and holds a market capitalization of $5.3 billion, according to Fintel data.

Analysts Raise Spot Bitcoin ETF Approval Chances, MicroStrategy Plans Increased Holdings

On August 2, analysts increased the likelihood of spot Bitcoin ETF approval in the United States to 65%. Meanwhile, MicroStrategy’s co-founder, Michael Saylor, reaffirmed the company’s goal of accumulating as much Bitcoin as possible in the upcoming quarters.

MicroStrategy currently holds 152,800 BTC, and Saylor confirmed that they plan to add to this existing Bitcoin holding. The company aims to increase its Bitcoin holdings to take advantage of the digital asset’s potential growth.

In a recent SEC filing, MicroStrategy disclosed its intention to sell up to $750 million in class A common stock. Saylor clarified that the primary use of the proceeds from the stock sale would be to acquire more Bitcoin, aligning with the company’s strategy to expand its cryptocurrency holdings.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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