Michael Saylor, CEO of Microstrategy, recently said that his company will keep on buying more bitcoin.
“Our goal is to accumulate as much bitcoin as we can on behalf of our shareholders, and we acquired from cash flows, we bought that last tranche for $48.4 million dollars of company cash.”
He went on to say that Microstrategy would buy as much bitcoin as it possibly could as long as market conditions allowed it. Commenting on the fact that Microstrategy shares were up more than 200% Saylor said that potential share sales would just be used to buy even more bitcoin.
The Microstrategy plan, according to Saylor, is to use all the resources the company has in order to keep on acquiring bitcoin going forward. He remarked that at the same time that bitcoin was up 145%, since three years ago when his company began its strategy, shares in his company had risen 254%. He said:
“Our strategy is levered long, offer a yield, don’t charge a fee, and then actively manage our position and actively manage acquisitions and financings between equity, debt, and cash flows in order to get the best result for our shareholders.”
On the potential of spot Bitcoin ETFs becoming available, Saylor was really bullish, saying that this would enable large hedge funds and sovereigns to enter the space with many $billions of capital.
On the difference between investing in Microstrategy and a spot ETF, Saylor remarked:
“We don’t have a capital structure that would allow for tens of billions of dollars to be invested in bitcoin, so we are a unique instrument, we’re that sports car, and the spot ETF has gotta be like the supertanker.”
On the fact that Microstrategy has rallied so much more than bitcoin so far this year Saylor explained:
“Bitcoin is the house everybody wants, but it’s in a foreign country and you have to pay cash to buy it. It takes about a year and you can’t rent it or mortgage it. Microstrategy is that same house in the best neighbourhood with 10,000 acres of ranch land attached to it, and we can generate a yield and you can actually buy it financed by your local bank right? We’re a compliant security. So if you’re an institutional investor and you’re looking for an easy way to get bitcoin exposure that doesn’t charge you a fee, that is financeable, that is good collateral, then Microstrategy is pretty compelling right now.
“We will always be differentiated from the ETFs because they can never offer leverage, no yield, they have limited hedging options. They are not diversified, and they charge a fee.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.