How Spot Bitcoin ETFs Will Affect MicroStrategy? Saylor Explains!

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• Michael Saylor, the founder and CEO of MicroStrategy, views the long-awaited launch of spot Bitcoin ETFs as a positive development for the industry.
• MicroStrategy is often seen as a Bitcoin proxy due to its significant holdings of the cryptocurrency.
• Comparing MicroStrategy to an airline company, Saylor likened ETFs to a sea freight line, stating that they offer leverage without high performance fees.

Michael Saylor, the founder and CEO of MicroStrategy, discussed the company’s plans in relation to spot Bitcoin ETFs.

Spot Bitcoin ETFs and MicroStrategy

Michael Saylor, the founder and CEO of MicroStrategy, sees the long-awaited launch of spot Bitcoin ETFs as a positive development for the industry. In a Bloomberg interview, Saylor discussed how a Bitcoin ETF differs from MicroStrategy’s shares for potential and existing investors.

MicroStrategy is often seen as a Bitcoin proxy due to its significant holdings of the cryptocurrency. According to Bitcoin Treasuries data, MicroStrategy is listed as the largest public holder of Bitcoin. However, when asked whether the ETF launch would have a negative impact on MSTR, Saylor responded: “ETFs are unleveraged and charge a fee. MicroStrategy is an operating company, so we are quite unique.”

Saylor emphasized that MicroStrategy could generate additional Bitcoin through its P&L or capital markets operations. Describing MicroStrategy as an airline company, he viewed ETFs as a sea freight line, adding that they offer leverage without high performance fees.

Furthermore, he stated, “And we can avail ourselves of intelligent leverage. For example, we can borrow at 0% interest for many years to buy Bitcoin.” The executive also confirmed that the company would continue to buy Bitcoin and said, “So our goal is always to find a way to get more Bitcoin per share for our shareholders.”

Improvement in MSTR’s BTC price-cost ratio

As a leading holder of Bitcoin, MicroStrategy improved its Bitcoin price-cost ratio in December following a decline in the cryptocurrency’s value. The company’s market capitalization is currently $9.1 billion, with an astonishing 83% of this value attributed to its Bitcoin holdings. Any increase or decrease in the price of Bitcoin significantly affects the company’s valuations.

Looking ahead to 2024, Saylor also predicts a major bull run for Bitcoin. Additionally, he noted that market volatility would present more opportunities to increase shareholder value. Saylor also anticipates that the approval of spot ETFs in January will trigger a demand shock and expects a supply shock in April as Bitcoin’s daily availability from miners drops from 900 to 450, further impacting Bitcoin’s price.