By
Chimamanda U. Martha
April 24th, 2024
Michael Saylor that his company Microstrategy will continue to add more Bitcoin. He believes that buying MSTR stock is the best way to seek exposure to Bitcoin instead of any Bitcoin futures or ETF products.
On Thursday, February 3, Michael Saylor, CEO of business intelligence firm MicroStrategy spoke to Bloomberg about Q4 results for his company. As we all know, Saylor is a big Bitcoin fan and he didn’t shy on cementing about it.
MicroStrategy already holds more than 125,000 bitcoins on its balance sheet with its recent purchase last month. CEO Michael Saylor said that the company is exploring more ways to add Bitcoin to its balance sheet. Saylor basically reiterated his company’s CFO’s stand that the firm will continue to add Bitcoin to its balance sheet.
Furthermore, he added that buying the company’s stock MSTR will be a good way for investors to gain exposure to Bitcoin. He considers it to be an even better alternative over exchange-trade-fund (ETF). Saylor said that unlike other Bitcoin futures and ETF products, buying MSTR doesn’t come with additional costs.
The industry is keenly awaiting the approval of the spot Bitcoin ETF from the US SEC. The MicroStrategy CEO believes that even that would be less attractive than buying his company’s stock. He added:
“If you’re looking for a leveraged bitcoin play with spot exposure that’s got positive yield, then MicroStrategy is the only game in town”.
The firm has been raising firms through convertible notes to buy more and more BTC. Now it is also looking at alternative methods to make more purchases. “Probably the most compelling and interesting ones are to generate yield off the 110,000 bitcoin that are currently unpledged, or to borrow against that 110,000 bitcoin and then reinvest that in more bitcoin,” said Saylor.
Michael Saylor Confident of Institutional Bitcoin Adoption
During his interview, Saylor said that he’s looking at a “lot more institutional adoption” as of date. Speaking on this matter, he said:
“I see evidence of a lot more institutional adoption, greater adoption amongst macro and other hedge funds. We’ve made great progress with corporations. There will be 24 publicly traded bitcoin miners by the end of the quarter, so lots of publicly traded companies in the Bitcoin space”.
The MicroStrategy CEO is confident that with time, more and more public traded companies will hold Bitcoins on their balance sheet. Also, there will be more public investors with Bitcoin exposure. Furthermore, Saylor notes that there have been several macroeconomic developments leading to more Bitcoin awareness. He added:
“Many of the macroeconomic developments have elevated the stature and the awareness of businesses and investors in the rest of the world to bitcoin. The circumstances and the currency volatility in Turkey, the currency volatility in South America, the currency volatility in Africa, all of these things have elevated institutional awareness of bitcoin”.
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