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CEO of MicroStrategy, a company that owns Bitcoin worth billions of dollars, Michael Saylor, in an interview with CNBC, said that the stocks in his company are acting as spot bitcoin exchange-traded funds in the US till the SEC approves its spot ETF.
In a report published on Thursday, CNBC quoted Saylor, who called their stocks “non-existent spot ETF” during the recently concluded Bitcoin 2022 conference in Miami.
The approval of the SEC or Securities and Exchange Commission for several applications from companies wanting to launch a spot Bitcoin ETF is awaited by the investors. The watchdog has approved Bitcoin futures ETFs that provide Bitcoin exposure through futures contracts that predict the movement in Bitcoin prices.
Saylor further clarified that MicroStrategy does not plan to stop adding Bitcoin to its balance sheet, which it has been doing since 2020. Saylor also explained that as they provide cash, they are doing a responsible thing for their shareholder “we convert currency which is devaluing, into an asset which is appreciating.”
Meanwhile, this month in a regulatory filing, Microstrategy claimed itself to be the largest publicly-traded corporate Bitcoin holder, with its subsidiaries having invested almost $4 billion on bitcoin purchases. The company possesses around 129,218 bitcoins purchased at an average price of $30,700.
Also Read: Crypto startup Blockchain.com planning 2022 IPO
As of Thursday, the flagship currency was trading at approx. $42,590. The leading crypto asset has lost around 8% so far in this year; however, they have reiterated their recovery from the lows that plummeted the prices of crypto assets to below $36,000.
Saylor commenting on the prices of Bitcoin says that the top crypto asset has been grappling while a “tug of war” is happening among bitcoin maximalists, micro traders, and tech investors. In addition to Microstrategy’s BTC holdings, Saylor himself enjoys a collection of over 17,000 bitcoins.
During Thursday’s session, Shares of MicroStrategy were trading at $453, experiencing a drop of 16% this year.
As per a recent survey conducted by Nasdaq, a spot crypto ETF product is heavily backed by financial advisors; 72% say they would make their entry into crypto if such a product were available in the market.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
