“Spot ETFs have opened a door for institutional capital to flow into the bitcoin ecosystem. They are facilitating the digital transformation of capital, and every day hundreds of millions of dollars of capital are flowing from the traditional analog ecosystem into the digital economy” , he pointed out in an interview with ‘Bloomberg TV’.
In addition, Taylor redoubled its bet on the queen cryptocurrency, ensuring that “bitcoin is the exit strategy“for many investors who are capitalizing on the asset’s good performance after it recently rebounded above $53,000.
Bitcoin better than gold and S&P?
According to Saylor, BTC value competes with asset classes like goldreal estate or even the index S&P 500, which have market caps many multiples higher than bitcoin. And, for Saylor, bitcoin is superior to all of them.
“We believe that capital will continue to flow from those asset classes into bitcoin because bitcoin is technically superior to those asset classes and that being the case, there is simply no reason to sell the winner and buy the losers,” he said.
MicroStrategy Holdings
MicroStrategy announced in early February that it had increased itss bitcoin holdings up to 190,000 tokens, reinforcing its status as the largest institutional holder of this asset. In the fourth quarter earnings report, the company indicated that, at the end of 2023, it acquired 31,755 bitcoins since the end of the third quarter, which represents the largest quarterly increase in bitcoins in the last three years and the thirteenth consecutive quarter in the that add this asset to their balance sheet.
“We have benefited from the significant rise in bitcoin prices in the fourth quarter and we have also continued to leverage our strategic activities in the capital markets and available cash to accumulate more bitcoin and increase value for our shareholders. Thanks to our unique bitcoin strategy and strong track record, we now hold 190,000 bitcoins at a total purchase price of $31,224,” explained Andrew Kang, CFO of MicroStrategy.
During the presentation of results, Saylor assured that the good performance of 2023 could be attributed to investors recognizing the broader theme of a “digital transformation” of assets. “2024 is the year of the birth of bitcoin as an institutional grade asset class, in fact it is the first new asset class of the modern era. The next 15 years will be a regulated, institutional and high growth period for bitcoin, very different from the last 15 years,” he added.
In December 2020, MicroStrategy became the first publicly traded company in buy bitcoin for capital allocation. Since then, the company’s share price has grown more than 300%, while technology stocks such as Microsoft and Google have grown around 95%.
Likewise, Saylor acknowledged last January that spot ETFs “could be the biggest advance seen on Wall Street in 30 years.” According to Saylor, these exchange-traded funds are going to cause a “demand shock” for bitcoin, which will soon be followed by a supply shock in the form of a halving next April. Once the ‘halving’ is completed, only 450 bitcoins will be produced per day, compared to the current 900
Source: Ambito
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