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MicroStrategy co-founder Michael Saylor believes his firm will remain an attractive option for investors seeking Bitcoin (BTC) exposure, regardless of whether exchange-traded funds are approved in the future.
He confirmed that the company intends to continue increasing its Bitcoin holdings on its balance sheet, potentially using proceeds from a planned $750 million share sale.
During a Bloomberg interview on August 2 regarding the potential impact of an approved spot Bitcoin ETF on the company’s offerings, Saylor expressed confidence that MicroStrategy would still provide value that spot ETFs cannot.
Consider a #Bitcoin Strategy. pic.twitter.com/MJcGxiVHop
— Michael Saylor⚡️ (@saylor) August 2, 2023
He made similar remarks during the August 1 earnings call, stating that MicroStrategy would remain “differentiated as a particular Bitcoin operating strategy” once spot ETFs are available.
Bitcoin has risen 145% since the company began its purchasing strategy in August 2020, he noted, adding that the firm utilizes leveraged investments to generate yields that are distributed to shareholders.
“We can tap into leverage because we’re an operating company, which an ETF couldn't do so we view it as being beneficial to the entire ecosystem.”
Conversely, Saylor noted that spot Bitcoin ETFs would enable large hedge funds and sovereign entities to enter the market with billions of dollars.
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“We are a unique instrument, we are the sportscar whereas the spot ETF is going to be the supertanker.”
“Spot ETFs will serve another set of customers in a synergistic fashion to grow the entire asset class,” he added during the earnings call.
According to Fintel, the firm has more than 470 institutional shareholders and a market capitalization of $5.3 billion.
Related: MicroStrategy returns to profit and now owns $4.4B worth of Bitcoin
On August 2, analysts increased the probability of spot Bitcoin ETF approval in the United States to 65%.
When asked how much their existing holdings of 152,800 BTC would increase in upcoming quarters, Saylor confirmed the goal is to “accumulate as much Bitcoin as we can.”
He also confirmed that the company plans to sell up to $750 million in class A common stock, as per a recent SEC filing, adding that the primary use of proceeds “generally is just to acquire Bitcoin.”
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