MicroStrategy (MSTR) chairman Michael Saylor has reaffirmed his software company’s position as the go-to option for investors seeking exposure to Bitcoin (BTC) without directly purchasing it.
Saylor expressed this sentiment during an interview with Bloomberg TV on Wednesday, noting that even if a spot Bitcoin exchange-traded fund (ETF) is approved, MicroStrategy will continue to be a preferred choice for investors.
The possibility of regulators greenlighting one of the nine current applications with the Securities and Exchange Commission (SEC) for a spot ETF has been a subject of much discussion.
Saylor believes that such an approval would potentially inject billions of dollars into the Bitcoin market, which would be advantageous for companies like MicroStrategy, given their substantial Bitcoin holdings on their balance sheets.
Drawing an analogy, Saylor likened MicroStrategy’s stock to a fast car that investors can utilize to boost their Bitcoin exposure. In contrast, an approved spot ETF would act as the fuel to keep prices elevated in the market.
He emphasized the symbiotic relationship between his company and the potential spot ETF, describing MicroStrategy as the “sports car” and the spot ETF as the “super tanker,” benefiting the entire cryptocurrency ecosystem.
Historically, stocks of companies like MicroStrategy and crypto miners have demonstrated high correlation with the prices of the digital assets they hold. As a result, investors have often used these stocks as a means to gain exposure to digital assets without directly purchasing them from cryptocurrency exchanges.
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MicroStrategy holds around $4.5 billion worth Bitcoin
MicroStrategy, a prominent player in the cryptocurrency space, holds approximately $4.5 billion worth of Bitcoin, and it recently purchased an additional $341 million in the second quarter. Furthermore, the company has revealed plans to potentially sell up to $750 million of stock to acquire more Bitcoin and pursue other ventures.
Since adopting its Bitcoin strategy, which involves converting all of its core software intelligence business earnings into Bitcoin, MicroStrategy has generated a remarkable 254% return. This performance has surpassed the cryptocurrency’s own gain of 145% during the same period, as reported in a research note by TD Cowen.
As the cryptocurrency market continues to evolve, MicroStrategy’s strategic approach and strong Bitcoin position have solidified its standing as a key player in the industry, attracting investors looking for indirect exposure to the digital asset.
