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MicroStrategy is arguably a giant in the world of computer software, but at this stage, the company has invested so much money in bitcoin that CEO Michael Saylor says investing in his company is the equivalent of BTC spot trading.
Michael Saylor Is Confident in His Company’s BTC Dealings
Saylor said these words in a half serious, half joking manner. It has been said before that the company’s stock shares now correlate rather heavily with bitcoin given how much the company has invested. It is estimated at the time of writing that MicroStrategy currently holds nearly $4 billion in BTC.
At the same time, there was a joke behind his verbiage given that the Securities and Exchange Commission (SEC) refuses to permit a bitcoin-based exchange-traded fund (ETF) that is based not on futures – which has already been released – but on actual, physical bitcoins. The organization says there is too much risk involved and too many threats of manipulation. The price of bitcoin is still quite volatile, and thus it cannot in good faith allow traders to step deeper into the world of BTC.
Saylor says that if traders want access to the equivalent of an early bitcoin ETF, they should invest in MicroStrategy. He commented in an interview:
We’re kind of like your nonexistent spot ETF… If there was a spot ETF, you’d be paying a one percent fee, and it wouldn’t be leveraged. With MicroStrategy, we have a software company that generates cash flow, so we convert our cash flows into bitcoin.
MicroStrategy was established in 1989. While the company has always been big, the last two years have arguably been its biggest given how much bitcoin executives have bought. The company first began buying bitcoin in August of 2020. MicroStrategy has since become one of the biggest institutional supporters of BTC.
Saylor continued by saying that his company doesn’t have any plans to discontinue its bitcoin purchases. He said:
Why would we ever stop? As we generate cash flows, we think the responsible thing to do for our shareholders is we convert currency, which is devaluing, into an asset which is appreciating. If you want to be two percent exposed to bitcoin, you’d put two percent of your portfolio into MicroStrategy, and the other 98 percent of your portfolio you can invest in whatever you want. They don’t want the CEO of a publicly traded company to be unpredictable and random.
Buying Even More
Not long ago, MicroStrategy took out a large loan to purchase more BTC. Saylor commented:
We have $5 billion in collateral. We borrowed $200 million, so I’m not telling people to go out and take a highly leveraged loan. What I am doing, I think, is doing my best to lead the way and to normalize the bitcoin-backed financing industry.