In a discussion with Bloomberg, MicroStrategy co-founder and former CEO, Michael Saylor, shared his perspective on the potential approval of spot Bitcoin ETFs and its impact on the company’s Bitcoin strategy. Saylor firmly stated that even if the U.S. Securities and Exchange Commission (SEC) were to approve spot Bitcoin ETF applications, it would not affect MicroStrategy’s offerings. He believes that MicroStrategy’s Bitcoin strategy offers a unique proposition that ETFs cannot emulate.
MicroStrategy’s Unique Bitcoin Operating Strategy
During an earnings call, Saylor emphasized the uniqueness of MicroStrategy’s “Bitcoin operating strategy.” He explained that being an operating company allows them to tap into leverage, which ETFs cannot do. Therefore, MicroStrategy views spot Bitcoin ETFs as beneficial to the entire ecosystem but does not see them as a direct competition to their offering.
Bringing Liquidity and Institutional Investors
Saylor acknowledged that spot ETFs can play a crucial role in welcoming institutional investors with substantial liquidity to the crypto industry. While they serve a different set of customers, he believes their existence will contribute to the growth of the overall asset class. He compared MicroStrategy to a sports car and spot ETFs to supertankers, emphasizing the different niches they cater to in the market.
Utilizing Proceeds for Bitcoin Acquisition
MicroStrategy had filed an application with the SEC to sell up to $750 million in Class A common stock. Saylor confirmed that the potential proceeds from this stock sale would be used to acquire more Bitcoin and to repurchase or repay outstanding debt. This demonstrates MicroStrategy’s continued commitment to accumulating Bitcoin as a hedge against inflation.
MicroStrategy, one of the largest holders of Bitcoin, has been strategically purchasing the cryptocurrency since 2020. Saylor’s faith in Bitcoin as an asset has been unwavering, despite market fluctuations. Stepping down as CEO to focus on the company’s Bitcoin strategy has paid off, with MicroStrategy’s stocks surging by 254% since 2020, outperforming key assets and big tech stocks.
Future Bitcoin Accumulation
Saylor remains steadfast in his goal to accumulate as much Bitcoin as possible. When asked about the company’s future Bitcoin holdings, he reiterated their intention to add to their existing holdings of 152,800 BTC. This ongoing accumulation strategy positions MicroStrategy as a prominent player in the cryptocurrency space.
As the cryptocurrency market continues to evolve, MicroStrategy’s unique Bitcoin strategy sets it apart from competitors. The potential approval of spot Bitcoin ETFs by the SEC will contribute to the growth of the entire crypto industry, bringing in institutional investors. However, MicroStrategy’s differentiated approach as an operating company allows them to leverage unique opportunities that ETFs cannot access. With their continued commitment to Bitcoin accumulation, MicroStrategy is poised to maintain its position as a significant player in the market.