In an interview with CNBC, Michael Saylor, the executive chairman and co-founder of MicroStrategy, discussed the burgeoning demand for Bitcoin exchange-traded funds (ETFs), estimating a backlog of interest spanning over a decade.
Saylor remarked, “There’s 10 years of pent-up demand people been waiting for these ETFs and finally, mainstream investors are able to access Bitcoin and I think that’s what’s driving the surge of capital in the asset class.”
During the interview, Saylor delved into various aspects of the crypto industry, including the introduction of Bitcoin ETFs, the increasing valuation of Bitcoin, and the future trajectory of the company.
He revealed MicroStrategy’s forthcoming rebranding as a Bitcoin development company, citing the firm’s successful Bitcoin strategy and its status as the largest publicly traded holder of Bitcoin as catalysts for this transition.
Saylor outlined plans to develop software, generate cash flow, and utilize capital markets to further accumulate Bitcoin for shareholders while fostering the growth of the Bitcoin network.
Additionally, Saylor addressed MicroStrategy’s transition from on-premises to cloud and artificial intelligence (AI) technologies, underscoring the company’s commitment to continued growth and innovation.
Saylor emphasized Bitcoin’s appeal as an investment asset, describing it as novel, digital, global, unique, and uncorrelated to traditional risk assets, thereby making it an attractive addition to the portfolio of responsible investors.
Bitcoin’s price surged past the $50,150 mark on Tuesday, marking a significant 4% increase and signaling renewed investor confidence fueled by recent regulatory developments and expectations of further interest rate reductions.
MicroStrategy’s commitment to Bitcoin investment remains steadfast in 2024. In the fourth quarter of 2023, the company purchased 31,755 Bitcoin at a cost of $1.25 billion, increasing its total holdings to 190,000 units.
The Fourth Quarter 2023 Financial Results report highlighted MicroStrategy’s ongoing Bitcoin acquisitions, with an aggregate purchase price reaching $5.93 billion by the end of 2023, averaging $31,224 per Bitcoin.
Chief Financial Officer Andrew Kang noted the company’s strategic capital market activities and utilization of available cash reserves to capitalize on Bitcoin’s price increase during Q4. Additionally, Saylor disclosed the acquisition of an additional 850 Bitcoin for $37.2 million in January 2024.