MicroStrategy, the well-known Bitcoin investment firm co-founded by Michael Saylor, continues to assert its appeal as a means for investors to gain exposure to the cryptocurrency, regardless of the approval of exchange-traded funds (ETFs). Furthermore, Saylor has confirmed that the company intends to increase its Bitcoin holdings, potentially using the proceeds from a planned $750 million share sale.
In an interview with Bloomberg on August 2nd, Saylor expressed confidence that MicroStrategy would still offer something unique compared to spot Bitcoin ETFs. He emphasized the company’s differentiated operating strategy and its ability to tap into leverage, which he believes will be beneficial to the entire cryptocurrency ecosystem. He further explained that since MicroStrategy is an operating company, it can generate yields from leveraged investments and pass those returns on to shareholders — an advantage that ETFs cannot provide.
During MicroStrategy’s earnings call on August 1st, Saylor reasserted similar sentiments, stating that the company’s operating strategy allows it to stand apart from potential spot Bitcoin ETF offerings. He highlighted the impressive performance of Bitcoin since the company initiated its purchasing strategy in August 2020, with a 145% increase. Saylor also stated that spot Bitcoin ETFs would attract large hedge funds and sovereigns, potentially bringing billions of dollars into the space. In comparison, he likened MicroStrategy to a sportscar, while he characterized spot ETFs as supertankers, highlighting the distinct advantages of each.
Saylor believes spot Bitcoin ETFs will serve a different set of customers and contribute to the overall growth of the asset class. MicroStrategy already boasts over 470 institutional shareholders and a market capitalization of $5.3 billion, underscoring its appeal and position as a leading Bitcoin investment firm.
Regarding future plans, Saylor confirmed MicroStrategy’s commitment to accumulating as much Bitcoin as possible. When asked about the company’s existing holdings of 152,800 BTC and their growth in the coming quarters, he expressed the goal of further increasing the position.
To facilitate its Bitcoin acquisitions, MicroStrategy filed with the Securities and Exchange Commission (SEC) to sell up to $750 million in class A common stock. Saylor disclosed that the primary use of the proceeds from this stock sale is to acquire additional Bitcoin.
In a related development, analysts recently raised the probability of spot Bitcoin ETF approval in the United States to 65%. However, MicroStrategy appears undeterred by this potential competition and remains confident in the unique value it offers to investors.
MicroStrategy’s unwavering commitment to Bitcoin and its belief in its own differentiated strategy continue to underpin its success and position in the market. As the company forges ahead, it aims to solidify its position as a premier avenue for investors seeking exposure to the leading cryptocurrency.
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