MicroStrategy Remains Committed to Bitcoin Strategy Regardless of Spot ETFs Approval, Says Co-Founder Michael Saylor

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•  Despite possible spot ETF approval, MicroStrategy’s Bitcoin strategy remains unchanged, says co-founder Michael Saylor.
• The firm continues its Bitcoin acquisition plan, backed by potential proceeds from a $750 million share sale.

In the face of potentially imminent Bitcoin spot ETF approvals, Michael Saylor, co-founder of MicroStrategy, remains firm in his commitment to Bitcoin. He likened his company’s nimble, focused investment approach to a “sportscar,” contrasting it with the “supertanker” method of spot ETFs.

During a discussion with Bloomberg on August 2nd, Saylor expressed unwavering confidence in his firm’s unique investment proposition, stating that MicroStrategy can offer an alternative Bitcoin exposure that spot ETFs cannot. These sentiments were reiterated during the firm’s earnings call, where he emphasized the distinctive nature of MicroStrategy’s Bitcoin-centric operational strategy.

Consider a #Bitcoin Strategy. pic.twitter.com/MJcGxiVHop

— Michael Saylor⚡️ (@saylor) August 2, 2023

Saylor pointed out that MicroStrategy’s strategy capitalizes on leveraged investments to create returns for shareholders, a maneuver that an ETF, being a non-operating entity, cannot replicate. However, he acknowledged that spot Bitcoin ETFs could draw large hedge funds and sovereign wealth funds into the cryptocurrency space, injecting significant capital.

“Spot ETFs are geared towards serving a different demographic of investors, contributing synergistically to the expansion of the entire asset class,” he said during the call. MicroStrategy, which boasts over 470 institutional shareholders and a market capitalization of $5.3 billion, carves a unique space in the cryptocurrency market.

65% Chance A Bitcoin Spot ETF Will be Approved

As market analysts increase the predicted likelihood of spot Bitcoin ETF approval in the US to 65%, Saylor reasserted MicroStrategy’s objective to “accumulate as much Bitcoin as we can.” This suggests that their present holdings of 152,800 BTC are set to rise in the forthcoming quarters.

He also confirmed the firm’s intention to sell up to $750 million in Class A common stock, according to a recent SEC filing, with the primary aim of using the proceeds for further Bitcoin acquisition. This bold decision underlines the firm’s unwavering commitment to its Bitcoin strategy, thereby maintaining its distinctive position in an ever-evolving crypto environment.