MicroStrategy Racing the Bitcoin ETFs to 21MM

MicroStrategy, led by Michael Saylor, has bolstered its Bitcoin portfolio by purchasing an additional 3,000 Bitcoin at an average cost of $51,813 per coin, totaling $155 million, during the period from February 15 to 25. This acquisition increases the firm’s total Bitcoin assets to 193,000, acquired at an average price of $31,544 per Bitcoin, with a total investment of $6.09 billion. This was disclosed in a recent update on X by Michael Saylor, the company’s founder and chairman, positioning MicroStrategy as the leading Bitcoin investor among publicly listed companies.

In a roundabout way, MicroStrategy was really the first Bitcoin ETF, since investing in MSTR stock allows you to be a proxy owner of the rise of Bitcoin’s value. MSTR stock has risen from roughly $150/share to $800/share since the beginning of 2023. 

This move comes amidst optimistic forecasts from Bloomberg’s senior analysts, suggesting that Bitcoin ETFs may surpass gold ETFs in terms of assets under management (AUM) within the next couple of years.

A research note published on X by Bloomberg’s senior analyst Eric Balchunas and associate analyst Andre Yapp on February 26 highlighted the potential for increased competition between Bitcoin ETFs and traditional gold investments. Since their debut on January 11, the ten spot Bitcoin ETFs in the U.S. have collectively acquired approximately 5,500 Bitcoin, as reported by Farside Investors.

Despite their recent introduction, Bitcoin ETFs have already seen over $8 billion more in inflows than their gold counterparts, holding nearly 40% as much in assets, with projections to surpass gold ETFs in size within two years. In comparison, gold ETFs have seen $3.6 billion in net assets accumulated over the same timeframe, while struggling to maintain their $90 billion in assets amid stagnant gold prices. According to Gold Price data, gold prices have experienced a minimal decrease of 0.01% in the last 24 hours, reaching $2,033 per ounce.

On February 20, Saylor expressed his unwavering commitment to Bitcoin, stating his intention to perpetually invest in Bitcoin without plans to divest. He championed Bitcoin as a superior asset compared to gold, real estate, and the S&P 500, emphasizing its technical advantages and his strategy to continue investing in what he considers the most promising asset class.