Michael Saylor confidently positioned his software company, MicroStrategy, as the optimal choice for investors seeking bitcoin exposure even in light of a potential approval for a spot bitcoin exchange-traded fund (ETF). Saylor claims that the substantial influx of investments driven by an ETF would highly benefit companies with extensive cryptocurrency exposure, such as MicroStrategy.
The assertive CEO made these comments during a Bloomberg TV interview, where he also likened the company’s asset-backed stock to a sports car, capable of supercharging investors’ bitcoin exposure. In this analogy, the proposed spot ETF serves as fuel to sustain elevated market prices. “We are that sports car. The spot ETF will be that super tanker,” Saylor asserted, highlighting the potential benefits of this development for the entire ecosystem. This metaphor reflects the interdependence between the stocks like MicroStrategy’s and the price of the digital assets that secure them.
Historically, investors have used stocks from companies like MicroStrategy and cryptocurrency miners to explore the digital asset landscape without purchasing directly from a crypto exchange. However, it’s crucial to remember how these stocks’ performance is highly susceptible to the instability of their digital assets.
MicroStrategy, now known as a prodigious bitcoin holder, currently possesses approximately $4.5 billion worth of bitcoin. Other plans on its horizon include selling up to $750 million of stock to fund additional bitcoin purchases, amongst other cryptosphere influences.
Interestingly, following its strategy of converting all earnings into bitcoin, MicroStrategy has recorded a 254% return. In comparison, the cryptocurrency itself has only increased by 145% during the same time span, according to research by TD Cowen.
The software giant’s shares have seen similarly impressive performance, with a rise of around 170% this year alone, whereas bitcoin has grown by just over 70%. This disparity fuelled by MicroStrategy’s strategic financial decisions might reflect the hidden potential and risk associated with new ETFs’ influence on the market and bitcoin-centric companies. As this potential unfolds, scepticism and optimism will continue to intertwine, permeating the cryptosphere and shaping the market’s future direction.
Source: Coindesk
