News

MicroStrategy Stock Is Essentially a Bitcoin Spot ETF, Says CEO Saylor

0
Please log in or register to like posts.

MicroStrategy shares essentially double as a cash bitcoin ETF, CEO Michael Saylor told CNBC. “We’re kind of like your nonexistent cash ETF,” Saylor said. The SEC has not yet approved a spot bitcoin ETF. MicroStrategy has spent around $4 billion on bitcoin purchases. Something is loading.

Stock in MicroStrategy, the enterprise software company that has amassed billions of dollars worth of bitcoin, is essentially duplicating the first bitcoin exchange-traded fund in the United States, CEO Michael Saylor told CNBC.

“We’re kind of like your non-existent spot ETF,” CNBC, in a Thursday report, quoted Saylor on the sidelines of the Bitcoin 2022 conference in Miami earlier this month.

Investors are still waiting for the Securities and Exchange Commission to greenlight numerous applications from companies looking to launch a spot bitcoin ETF, which would track the cryptocurrency itself. The agency has approved bitcoin futures ETFs that give exposure to bitcoin through futures contracts that speculate on the price movement of bitcoin.

MicroStrategy has been adding bitcoin to its balance sheet since 2020, and Saylor told CNBC he has no plans to stop doing so. “As we generate cash flow, we believe the responsible thing for our shareholders to do is convert a devaluing currency into an appreciating asset,” Saylor said.

MicroStrategy said in a regulatory filing this month that it was the largest publicly traded bitcoin holder and that together with its subsidiaries, it had spent about $4 billion on bitcoin purchases. The company holds 129,218 bitcoins purchased at an average price of $30,700.

On Thursday, Bitcoin was trading at around $42,590. It has lost around 8% so far in 2022, but recovered from a low that took the cryptocurrency back below $36,000. Saylor, who personally owns more than 17,000 bitcoins in addition to MicroStrategy’s holdings, told Insider this month that bitcoin has been struggling in a recent “standoff” between macro traders, tech investors and investors. bitcoin maximalists.

MicroStrategy shares are down 16% this year, trading at around $453 during Thursday’s session.

A recent Nasdaq survey found strong support for a crypto cash ETF product among financial advisors, with 72% saying they would invest in crypto if such a product were available.

Bill Murray under investigation for 'inappropriate behavior' after film set shutdown
Social media star reveals how she fakes hot beach photos for Instagram

Reactions

0
0
0
0
0
0
Already reacted for this post.

Reactions

Your email address will not be published.

GIF