The launch of a Bitcoin Spot ETF has coincided with a significant rise in BTC price. Some believe the ETF is a major driver behind this surge, with BTC price even reaching a new ATH before the upcoming halving event - a phenomenon never seen before. Adding to the bullish sentiment, Michael Saylor's company, MicroStrategy, continues to aggressively accumulate BTC. They are even engaged in a kind of arms race with BlackRock to hold the most BTC. Saylor's unwavering commitment to BTC has earned him the reputation of being the most prominent "diamond hands" investor in the crypto world, surpassing even El Salvador's president, Nayib Bukele, in terms of fame.
Michael Saylor has outlined the distinctions between investing in MSTR stock and a Bitcoin ETF [3]. While he emphasizes MSTR's advantages, the question remains: for investors, which is better - MSTR, whose value hinges heavily on its BTC holdings, or BTC itself?
While investing in MSTR could potentially offer higher returns, I prioritize self-custodying my BTC for greater control over my holdings. This means I rely on my own judgment, rather than trusting someone else's decisions, even a respected figure like Michael Saylor. Saylor has publicly stated MicroStrategy has no plans to sell its BTC. However, I believe it's a question of when, not if, such a sale might occur due to unforeseen circumstances or a strategic shift by the company.
I would like to know your views on investing in BTC and MSTR:
References:
[1] BlackRock and MicroStrategy in Neck and Neck Race As Firms’ Bitcoin Holdings Soar to Over $29,170,000,000 in BTC
[2] Public Companies that Own Bitcoin
[3] MicroStrategy Makes Its Case as Alternative to Spot Bitcoin ETFs
[4] Michael Saylor Suggests MicroStrategy Will Never Sell Its Bitcoin
Michael Saylor has outlined the distinctions between investing in MSTR stock and a Bitcoin ETF [3]. While he emphasizes MSTR's advantages, the question remains: for investors, which is better - MSTR, whose value hinges heavily on its BTC holdings, or BTC itself?
- In terms of profit: MicroStrategy's investment in Bitcoin (BTC) has been highly profitable. Since starting to buy BTC in August 2020, the company's stock (MSTR) has surged over 1220%. This is a significantly higher return than the roughly 500% gain in BTC price itself over the same period. This amplified gain is due to MicroStrategy's use of debt financing to buy more BTC. This strategy, called leverage, magnifies both profits and losses. While it has driven impressive returns so far, it also increases risk if the BTC price falls.
- In terms of credibility: some view MicroStrategy, a well-established company, as a more credible investment than BTC itself. They believe investors gain exposure not just to BTC but also to the experience of MicroStrategy's leadership. However, Bitcoin's strength lies in its decentralized nature. Existing for over a decade, it operates independently of any individual, company, or government. This decentralization fosters trust for many investors, myself included, compared to a traditional public company.
While investing in MSTR could potentially offer higher returns, I prioritize self-custodying my BTC for greater control over my holdings. This means I rely on my own judgment, rather than trusting someone else's decisions, even a respected figure like Michael Saylor. Saylor has publicly stated MicroStrategy has no plans to sell its BTC. However, I believe it's a question of when, not if, such a sale might occur due to unforeseen circumstances or a strategic shift by the company.
I would like to know your views on investing in BTC and MSTR:
- Do you choose to invest in BTC or MSTR? Why?
- Will MSTR continue to generate better returns than BTC?
- Is an investment in MSTR safer than an investment in BTC?
References:
[1] BlackRock and MicroStrategy in Neck and Neck Race As Firms’ Bitcoin Holdings Soar to Over $29,170,000,000 in BTC
[2] Public Companies that Own Bitcoin
[3] MicroStrategy Makes Its Case as Alternative to Spot Bitcoin ETFs
[4] Michael Saylor Suggests MicroStrategy Will Never Sell Its Bitcoin