MicroStrategy co-founder and CEO, Michael Saylor (1), has expressed confidence that his firm's method of providing investors with Bitcoin exposure will continue to be attractive, irrespective of future exchange-traded fund (ETF) approvals.
Saylor further underscored his company's commitment to augmenting its Bitcoin holdings, even contemplating the usage of the prospective proceeds from a proposed $750 million share sale.
Spot Bitcoin ETFs vs MicroStrategy: A Unique Proposition
In a discussion with Bloomberg on August 2 regarding the potential impact of an approved spot Bitcoin ETF on his company’s proposition, Saylor maintained that MicroStrategy's offering would retain a unique value proposition that spot Bitcoin ETFs cannot emulate.
Saylor echoed similar sentiments during the August 1 earnings call, emphasizing that MicroStrategy's "unique Bitcoin operating strategy" will continue to set it apart even with the introduction of spot ETFs.
MicroStrategy's Profitable Bitcoin Strategy and Future Plans
Since initiating its Bitcoin purchasing strategy in August 2020, the company has witnessed a 145% rise in Bitcoin value. Saylor noted that MicroStrategy employs leveraged investments to generate yields that are subsequently passed on to shareholders.
Boasting more than 470 institutional shareholders, according to Fintel (2), and a market capitalization of $5.3 billion, MicroStrategy remains a significant player in the Bitcoin market.
On August 2, analysts increased the likelihood of spot Bitcoin ETF approval in the United States to 65%.
Continued Accumulation of Bitcoin and Future Prospects
When questioned about the future of their existing holdings of 152,800 BTC, Saylor stated that the aim is to "accumulate as much Bitcoin as we can."
In line with this, he confirmed plans to sell up to $750 million in class A common stock, as detailed in a recent SEC filing. He further clarified that the principal use of these proceeds would be to acquire more Bitcoin, reaffirming the firm's commitment to its Bitcoin strategy.