MicroStrategy’s stock can compete with spot Bitcoin ETFs.
MicroStrategy, the world's largest corporate holding, may be scrambling to compete with the recently launched bevy of Bitcoin ETFs. In a recent webinar, the company's founder, Michael Saylor, said that the company is moving towards a Bitcoin development strategy.
The move could be a way for the institution to compete with investors on the exchange platform. But how do the two stack up?
Being a micro strategy BTC development company
In its fourth quarter earnings webinar on Feb. 6, Saylor said.
“We see ourselves as a Bitcoin development company, which means we do everything we can to grow the Bitcoin network.
He also said that the company will get more BTC and will do everything possible to benefit the shareholders.
Commenting on Slide Saylor, he made a comparison between microstrategies and spot bitcoin trading products.
Comparing the company's structure, he presented four “special strengths”, noting that it is an operating company with active control over the capital structure and no management fees. In contrast, spot ETFs are traded with a fiduciary company that has limited control and management fees.
The ability to develop software, generate cash from operations, and use capital markets are three other characteristics that microstrategies possess and ETFs lack.
Read more: Bitcoin price prediction for 2024/2025/2030
In the year On February 8, ETF Store President Nate Gerasi observed:
“Microstrategy is trying to position bitcoin ETFs as a superior option for diversification.”
He added that there are “various risks” that have not been disclosed. He also noted that MicroStrategy stocks were down 20% year-to-date, while Bitcoin gained 4%.
MSTR vs BTC ETFs
However, MSTR stock has performed well over the past 12 months, gaining 88 percent. It posted a yearly high of $685 on January 2 but has since cooled.
However, since the firm adopted its Bitcoin strategy in 2020, share prices have outperformed US stock indexes, commodities and even the crypto markets themselves.
Spot Bitcoin ETFs are still in their infancy, having only been trading for four weeks. However, in addition to Greyscale, he gained 187,000 BTC during that period and nearly eclipsed Microstrategy's holdings of 190,000 coins.
Bitcoin ETFs are expected to perform well in 2024 as the crypto market enters a bull phase following the BTC halving event in April.
However, this is good news for MicroStrategy, which has already increased 41.6% in total BTC purchases, according to Saylor Tracker.
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