Michael Saylor: MicroStrategy Is A Better Exposure To Bitcoin Than Funds

According to Michael Saylor, the Chief Executive of MicroStrategy, his firm’s stock, MSTR, is a better alternative to other exchange-traded vehicles with exposure to Bitcoin.

Talking with Bloomberg, Saylor elaborated on his statement saying that unlike Bitcoin futures exchange-traded funds (ETFs) on the market or Bitcoin funds like Grayscale, investing in MicroStrategy doesn’t come with fees.

Microstrategy currently holds nearly 125,000 BTC on its balance sheet, presenting considerable exposure to Bitcoin.

Saylor argued that even a spot ETF, which the Securities and Exchange Commission hasn’t yet approved, could be less attractive than a MicroStrategy investment since as an operating company, it does not charge fees. Also, MicroStrategy can generate additional yield from its holdings. Saylor said:

“If you’re looking for a leveraged bitcoin play with spot exposure that’s got positive yield, then MicroStrategy is the only game in town.”

According to the Chief Executive, the company will continue to buy Bitcoin as part of its strategy. MicroStrategy’s latest BTC purchase was done using free cash flow, rather than issuing debt or equity as it has done previously. The firm generated $90 million in cash flow this year, which Saylor said will also be used to pay the debt service – the remainder will be invested in Bitcoin.

MicroStrategy is also looking alternative methods to make future big bitcoin purchases. Saylor elaborated:

“Probably the most compelling and interesting ones are to generate yield off the 110,000 bitcoin that are currently unpledged, or to borrow against that 110,000 bitcoin and then reinvest that in more bitcoin.”

However, the company hasn’t made any decisions yet and any plans will be tested against its risk parameters, according to Saylor.