MicroStrategy’s Michael Saylor Commits to Bitcoin Despite Spot ETF Approval

Michael Saylor, co-founder of MicroStrategy, is unwavering in his belief that his firm will continue to be an attractive option for investors seeking exposure to Bitcoin, even if spot Bitcoin exchange-traded funds (ETFs) are approved in the future. He remains steadfast in the company’s plan to add more Bitcoin to its balance sheet, and this includes utilizing the potential proceeds from a $750 million share sale.

In a recent interview with Bloomberg on August 2, Saylor expressed confidence that MicroStrategy would offer something unique that spot Bitcoin ETFs could not provide. He reiterated this sentiment during the August 1 earnings call, stating that the company’s “particular Bitcoin operating strategy” would set it apart even when spot ETFs enter the market.

Saylor highlighted the success of MicroStrategy’s Bitcoin purchasing strategy, which began in August 2020. Since then, Bitcoin’s value has surged by an impressive 145%. The company leverages investments to generate yields, which are then passed on to shareholders. Saylor emphasized that MicroStrategy’s status as an operating company allows it to tap into leverage, an advantage that ETFs do not possess, and thus contributing to the broader cryptocurrency ecosystem.

On the other hand, Saylor acknowledged that spot Bitcoin ETFs would attract substantial investments from large hedge funds and sovereign entities, potentially bringing billions of dollars into the cryptocurrency space. In this analogy, he likened MicroStrategy to a “sportscar,” while the spot ETFs would be akin to a “supertanker,” each serving a unique role in growing the asset class.

MicroStrategy boasts more than 470 institutional shareholders, according to Fintel, and currently holds a market capitalization of $5.3 billion.

Recent analysts’ predictions on August 2 raised the chances of spot Bitcoin ETF approval in the United States to 65%, hinting at the increasing possibility of regulatory acceptance.

Saylor confirmed the company’s ongoing goal to accumulate as much Bitcoin as possible, given their current holdings of 152,800 BTC. This indicates a continuous effort to bolster their cryptocurrency assets in the coming quarters.

Regarding the planned share sale, Saylor stated that MicroStrategy’s primary use of proceeds would be to acquire more Bitcoin. The firm remains committed to its strategy of accumulating and holding the leading cryptocurrency, reinforcing its position as an attractive option for investors seeking exposure to Bitcoin’s potential growth.

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