MicroStrategy Ownership as a Bitcoin Investment

Michael Saylor, the co-founder of MicroStrategy, has expressed confidence that his firm will continue to be a compelling avenue for investors seeking Bitcoin exposure, irrespective of potential approvals for exchange-traded funds (ETFs) centered on Bitcoin.

He has further affirmed MicroStrategy’s ongoing commitment to augmenting its Bitcoin holdings, including the possibility of utilizing funds from a proposed $750 million share sale.

In an interview with Bloomberg on August 2, Saylor commented on the potential influence of a spot Bitcoin ETF on MicroStrategy’s offerings. He maintained that MicroStrategy would still be capable of providing something that spot Bitcoin ETFs cannot.

Similar sentiments were echoed by Saylor during the company’s earnings call on August 1, where he stated that MicroStrategy would remain “distinctive as a specific Bitcoin operational strategy” upon the introduction of spot ETFs.

Saylor pointed out that since initiating its Bitcoin purchasing strategy in August 2020, the company has seen a 145% increase in its Bitcoin value. He noted that MicroStrategy employs leveraged investments to yield returns that are subsequently distributed to shareholders.

In his words, “We can employ leverage as we’re an operating company, something an ETF couldn’t do, and we see this as advantageous to the whole ecosystem.”

However, he also acknowledged that spot Bitcoin ETFs would enable significant entities like large hedge funds and sovereign funds to invest billions in the sector.

Saylor portrayed MicroStrategy as “a unique instrument; we are the sportscar, whereas the spot ETF will be the supertanker.” He also emphasized that “Spot ETFs will cater to a different customer base in a manner that complements the growth of the entire asset class,” during the earnings call.

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

On the same day as Saylor’s Bloomberg interview, analysts elevated the likelihood of spot Bitcoin ETF approval in the United States to 65%.

When questioned about the future of MicroStrategy’s existing Bitcoin holdings, currently at 152,800 BTC, Saylor confirmed the company’s objective is to “amass as much Bitcoin as possible.” He also verified plans to sell up to $750 million in class A common stock, as detailed in a recent SEC filing, and said that the primary goal for these funds “is essentially to purchase more Bitcoin.”