MicroStrategy co-founder and former CEO, Michael Saylor, has made it clear that potential spot Bitcoin ETF approvals will not impact the company’s “Bitcoin Strategy.” In a recent discussion with Bloomberg, Saylor emphasized that even if the SEC were to approve spot Bitcoin ETF applications, it would not affect the offerings provided by MicroStrategy. He argued that MicroStrategy’s Bitcoin offering presents a unique proposition that spot Bitcoin ETFs cannot replicate.
During an earnings call on August 1, Saylor reiterated this point, stating that MicroStrategy’s distinct “Bitcoin operating strategy” will continue to differentiate the company, even in the presence of spot Bitcoin ETFs. He pointed out that MicroStrategy, as an operating company, can tap into leverage, which traditional ETFs cannot. Saylor believes that this positioning provides benefits to the entire ecosystem.
Saylor also expressed his belief that spot ETFs are positive for the crypto industry, as they will attract institutional investors with significant liquidity into the space. While the spot ETFs will cater to a different set of customers, Saylor likens MicroStrategy to a sports car, while spot ETFs are more like a supertanker. Both play pivotal roles in growing the entire asset class synergistically.
MicroStrategy recently 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 utilized to “acquire Bitcoin.” The company’s Chief Financial Officer, Andrew Kang, further clarified that the proceeds would also be used for the repurchase or repayment of outstanding debt.
For MicroStrategy, Bitcoin has been a significant part of their treasury strategy since 2020. Saylor, who stepped down as CEO to focus on the company’s Bitcoin purchasing strategy, saw the cryptocurrency as a hedge against inflation. Despite recent market conditions, MicroStrategy continued to advocate for Bitcoin and made substantial purchases. This strategic move has allowed MicroStrategy to outperform its competitors, with its stock rising by an impressive 254% since 2020.
The Ongoing Pursuit to Accumulate Bitcoin
Saylor remains committed to the goal of accumulating as much Bitcoin as possible. When asked about how much more Bitcoin the company intends to add to their existing holdings of 152,800 BTC, Saylor reaffirmed his determination. MicroStrategy’s consistent purchasing of Bitcoin aligns with their belief in the long-term value and potential of the digital asset.
The positive performance of MicroStrategy’s stocks, combined with their increasing Bitcoin holdings, has solidified their position in the market. Saylor’s faith in Bitcoin as a store of value and his unwavering commitment to its acquisition has positioned MicroStrategy as a key player in the crypto industry.
As the cryptocurrency market eagerly awaits potential spot Bitcoin ETF approvals, MicroStrategy remains unfazed, confident in the uniqueness and strength of their Bitcoin strategy. With a clear vision and relentless pursuit of Bitcoin accumulation, MicroStrategy continues to leave a lasting impact on the industry.
[Featured image from Medium, chart from Tradingview.com]