MicroStrategy Founder: Bitcoin Spot ETF as Important as S&P 500, the Biggest Breakthrough on Wall Street in 30 Years
MicroStrategy founder Michael Saylor accepted an interview with Bloomberg and discussed the dual impact of the Bitcoin spot ETF and the halving of block rewards on the demand and supply of BTC, which will bring about a major bull market for BTC.
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Bitcoin spot ETF is the biggest development on Wall Street in 30 years
Bitcoin halving further reduces selling pressure
MicroStrategy is more intuitive than ETF
Bitcoin spot ETF is the biggest development on Wall Street in 30 years
The host asked, how will the Bitcoin spot ETF ultimately drive the price of Bitcoin?
Michael Saylor said:
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We cannot underestimate this event, which may be the biggest development on Wall Street in the past 30 years. The only thing that was as significant before this was the launch of the S&P 500, which allowed investors to invest in 500 companies with just one click. Currently, most of the funds in the Bitcoin market come from long-term holders and retail investors. Mainstream institutions did not have a suitable channel to invest in Bitcoin until the ETF. Therefore, I believe the approval of the spot ETF in January will be a major event.
Michael Saylor did not give his target price.
Bitcoin halving further reduces selling pressure
In addition to stimulating demand, Michael Saylor also pointed out that the halving will reduce supply:
There will be a supply shock in April, as approximately 900 BTC are sold daily by natural sellers and miners, and the quantity will decrease to 450 BTC daily after the halving. Supply will be scarce, and the Bitcoin spot ETF will increase demand by 2 to 10 times. In addition, the public will want an ideal asset for long-term holding. Therefore, I believe 2024 will be a major bull market for BTC.
MicroStrategy is more intuitive than ETF
Now that there is the Bitcoin spot ETF, why buy MicroStrategy?
Michael Saylor said that the ETF does not provide leverage and charges fees, while MicroStrategy, in addition to buying BTC with idle cash, can also manipulate its comprehensive income statement. For years, it has borrowed at 0% interest and purchased BTC. He pointed out:
You can think of the ETF as a shipping company, very efficient, carrying a large amount of capital over long distances. MicroStrategy, on the other hand, is more like an airline, without a large cargo capacity, but faster and higher performing. We provide leverage to users without charging fees, providing Bitcoin holders with a high-performance tool.
He emphasized that MicroStrategy continues to acquire BTC in various ways and strives to obtain more Bitcoin for shareholders’ ownership.
Michael Saylor finally mentioned the updated cryptocurrency accounting standards. He believes that this is a great advantage for companies holding cryptocurrencies. However, he revealed that MicroStrategy has not yet planned how to make good use of the new accounting standards, and he will leave this decision to the professionals within the company for evaluation.
(FASB passed fair value accounting standards to be implemented by the end of the year, benefiting companies holding cryptocurrencies such as MicroStrategy)
FASB
Michael Saylor
MicroStrategy
Bitcoin spot ETF
Further reading
Forbes 2024 Prediction: Cryptocurrency Accounting Rules Improvement, USDT to Be Delisted?
Good news for companies holding cryptocurrencies? The first US cryptocurrency accounting standard: reflecting holding gains and losses at fair value.
