Miami — MicroStrategy Technically, you may be in the business of enterprise software and cloud-based services, but CEO Michael Saylor says listed companies are also the first and only companies. Bitcoin US Spot Exchange Traded Fund
“We’re like your non-existent spot ETF,” Sailor told CNBC as a bystander at the Bitcoin 2022 conference in Miami.
So far, the Securities and Exchange Commission has only approved ETFs that track contracts that estimate the future price of Bitcoin, not the cryptocurrency itself.The committee Rejected green light One of the official applications of pure Bitcoin-based ETF — a financial product bit that gives investors the opportunity to invest in Bitcoin without signing up for an exchange, opening a cryptocurrency wallet or trading. Any of the other logistics related to buying and holding coins.
“If you have a Spot ETF, you’ll pay a 1% commission and it won’t be leveraged. MicroStrategy has a software company that generates cash flow, so it converts cash flow to Bitcoin.” continue. Saylor says the de facto MicroStrategy Bitcoin Spot ETF will generate a tax deferred yield of 4% to 5%.
Launched by Sailor in 1989, MicroStrategy has been adding Bitcoin to corporate balance sheets for the past two years.The company now has Spent nearly $ 4 billion Get Bitcoin for an average price of $ 30,700.
Saylor has no plans to stop buying Bitcoin. Bitcoin only further expands MicroStrategy’s exposure to digital assets.
“Why did you quit?” He said.
“When we generate cash flow, I think it’s our responsibility for our shareholders to convert the depreciating currencies into valuing assets,” MicroStrategy feels the company. He said it was not diversified because it was there. Shareholders have a consistent strategy.
“If you want to be exposed to 2% of Bitcoin, you can put 2% of your portfolio into MicroStrategy and the remaining 98% into your portfolio and you can invest in whatever you like. They are unpredictable and random for listed companies. Is. “
When MicroStrategy first added Bitcoin to its balance sheet in August 2020, it was pretty unpopular.
It went back to the end of the cryptocurrency winter when there were coins Trading in the low price range of $ 11,000And many institutional investors and major Wall Street banks remained bearish on digital assets.
However, Sailor’s move was immediately foresighted.
With the rise of Bitcoin in full swing in October 2020, old-fashioned billionaire hedge fund managers like Stanley Druckenmiller turned the course around and started buying Bitcoin.Major companies like Tesla, block (Formerly Square), and insurance company MassMutual, followed suit with hundreds of millions of dollars in Bitcoin.
Adopting this kind of mainstream is very important. Cryptocurrencies like Bitcoin are not backed by assets and are not fully trusted or backed by the government. They are partly worth it because people believe they are worth it. So if Bitcoin gets the approval of a Wall Street celebrity, it will be of great help.
Sailor’s Bitcoin mission helped make him an A-lister in the community. During the Bitcoin 2022 meeting, Sailor was chased by a fan aide to cross the Miami Beach Convention Center and compete with him for a selfie.
The CEO of a good company also wants the CEO of MicroStrategy to have a how-to about hiring in the enterprise.
MicroStrategy used company debt to buy BitcoinAnd in March, Sailor decided to take a new step towards the normalization of Bitcoin-backed finance. Borrowed $ 205 million with his Bitcoin as collateral — Then buy more cryptocurrencies.
“We have $ 5 billion in collateral. We borrowed $ 200 million. So I’m not telling people to go out and borrow a highly leveraged loan. Backed by Bitcoin. The financial industry was mortgage. ” Marathon Digital Also I took a credit line with Silvergate Bank..
“People realize they can borrow for something, they don’t have to sell it, and then they have their period-from’it’s 36 months of speculation’-it’s 36 years. Possessed,'” Sailor told CNBC.