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Michael Saylor, the co-founder of the American software company MicroStrategy, made some notable remarks about Bitcoin, Exchange Traded Funds (ETFs), and the company’s future investment strategy. Saylor’s comments generated great interest, given the ongoing speculation about the potential impact of a spot Bitcoin ETF in the US market.
Saylor: We Don’t See Approval of a Spot Bitcoin ETF as a Threat
Saylor believes that even if the US approves a spot Bitcoin ETF in the future, the company will continue to offer an attractive opportunity for investors to be exposed to Bitcoin. This confidence stems from MicroStrategy’s unique approach to the largest cryptocurrency.
Saylor stated that the company will continue to remain unique in its Bitcoin operation strategy and offer something that spot Bitcoin ETFs cannot provide. This is due to MicroStrategy being a company, which allows it to use leverage to generate returns that can later be passed on to shareholders. In contrast, an ETF, which is a type of investment fund and a tradable investment product on the stock exchange, cannot leverage like a company can.
Saylor also discussed the potential impact of approved spot Bitcoin ETFs on MicroStrategy’s shares, comparing his company to a sports car and spot Bitcoin ETFs to a super tanker. He stated that spot Bitcoin ETFs will likely cater to large hedge funds and sovereigns and enable them to inject billions of dollars into the market. However, he emphasized that MicroStrategy will continue to be a unique sports car in the ecosystem. According to him, spot Bitcoin ETFs and MicroStrategy will serve different customer groups but contribute synergistically to the growth of the Bitcoin class. Therefore, he sees the potential development of spot Bitcoin ETFs as an opportunity for the expansion of the Bitcoin market, rather than a threat.
$750 Million Worth of Shares to Be Sold for More BTC Purchases
Since initiating its Bitcoin purchase strategy in August 2020, MicroStrategy’s investments in Bitcoin have increased by 145 percent. In parallel, the company has confirmed its intention to continue adding more Bitcoin to its balance sheet. The anticipated funding source for these purchases will be the proceeds from a potential $750 million share sale.
As of August 2, analysts raised the probability of a spot Bitcoin ETF approval in the US to 65 percent. Nevertheless, MicroStrategy remains committed to its Bitcoin-focused strategy. Currently, MicroStrategy holds 152,800 BTC, and Saylor stated that they plan to increase this number in the coming quarters.
Saylor also announced that the primary use of the proceeds from the sale of Class A common stock, which could reach $750 million, will be to buy more BTC. He emphasized the goal of accumulating as much Bitcoin as possible and highlighted the company’s belief in the long-term value proposition of the cryptocurrency.
This stance aligns with MicroStrategy’s reputation as one of the most bullish institutional investors in Bitcoin. According to Fintel, the company currently has a market capitalization of $5.3 billion and over 470 institutional shareholders. Therefore, Saylor’s views and the company’s actions have significant implications for the Bitcoin market and the overall cryptocurrency market.
