US-listed company MicroStrategy, a dominant holder of Bitcoin, has been continuously buying Bitcoin in recent years. With Bitcoin surging to $52,000, its holdings have gained nearly $4 billion in value. However, MicroStrategy’s founder and CEO, Michael Saylor, stated on the 20th that the company has no plans to sell its Bitcoin holdings.
Background: MicroStrategy, a US-listed software company, has been optimistic about the future of Bitcoin. Since July 2020, it has been making long-term investments in Bitcoin and has never sold any. To date, the company has invested a total of $5.93 billion to purchase Bitcoin, with an average holding price of $31,224.
With the significant increase in the value of Bitcoin, MicroStrategy’s holdings have reached $9.91 billion, with an unrealized profit of nearly $4 billion. The company’s stock price has also risen accordingly.
MicroStrategy’s Determination to Hold Bitcoin:
As MicroStrategy’s holdings have generated substantial profits, there has been speculation about whether the company will sell its Bitcoin holdings to cash in. However, during an interview with Bloomberg on the 20th, Michael Saylor, MicroStrategy’s founder and CEO, expressed his confidence and stated that the company has no plans to sell its Bitcoin holdings. He continues to have a positive outlook on Bitcoin.
According to Saylor, holding Bitcoin is MicroStrategy’s exit strategy in the market. With Bitcoin’s market cap recently surpassing $1 trillion, it is now competing with larger asset classes such as gold, real estate, and the S&P 500. However, Saylor believes that Bitcoin is a superior product compared to all these asset classes.
MicroStrategy’s Transformation into a Bitcoin Development Company:
On the other hand, Michael Saylor mentioned the importance of the launch of a Bitcoin spot ETF last week. He pointed out that the demand for a Bitcoin ETF has been suppressed for a decade, and now mainstream investors can finally access Bitcoin through ETFs, leading to a significant inflow of funds. The demand for Bitcoin from ETFs is ten times the supply that miners can provide, making spot ETFs a significant driving force behind the rise of Bitcoin.
Additionally, Saylor revealed MicroStrategy’s plan to rebrand itself as a company focused on Bitcoin development. He stated that this aligns with the company’s direction and emphasizes the success brought by the Bitcoin-focused strategy, as well as MicroStrategy’s position as the largest publicly traded company invested in Bitcoin.
Saylor emphasized that MicroStrategy’s operating model is more diversified than traditional investment trusts. This allows the company to engage in software development, generate cash flow, utilize the capital market, accumulate Bitcoin for shareholders, and contribute to the development of the Bitcoin network.