Assets, Bitcoin

Is MicroStrategy a Bitcoin ETF?

MicroStrategy, a business intelligence software firm, has been investing in Bitcoin since 2020. The company has continued to increase its investment in Bitcoin, and as of February 2021, held 71,079 BTC.

MicroStrategy has been a public company since 1998 and is traded on the NAsdaq with the ticker MSTR.

In September 2020, MicroStrategy announced its intention to invest up to $250 million of its cash reserves in Bitcoin. The company made its first purchase of 21,454 BTC at an average price of $11,111 per coin.

In December 2020, the company invested an additional $650 million in Bitcoin, purchasing an additional 38,250 BTC at an average price of $17,177 per coin.

As of February 2021, the company has invested a total of $1.125 billion in Bitcoin and holds 71,079 BTC.

MicroStrategy has been a public company since 1998 and is traded on the NAsdaq with the ticker MSTR. The company provides business intelligence software.

NOTE: Warning: MicroStrategy is not a Bitcoin ETF. It is a publicly traded business intelligence software company that recently announced a purchase of 21,454 Bitcoin (valued at over $250 million) as part of their corporate treasury reserve strategy. Investing in MicroStrategy’s stock does not provide exposure to Bitcoin.

The company’s CEO Michael Saylor is a known advocate of Bitcoin and blockchain technology. In September 2020, Saylor said that “Bitcoin is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”

Saylor has also been critical of central banks and their quantitative easing policies. He believes that these policies will lead to inflation and higher prices for assets such as gold and Bitcoin.

MicroStrategy’s investment in Bitcoin has drawn comparisons to Grayscale’s Bitcoin Investment Trust (GBTC), which is an exchange-traded fund (ETF) that invests in Bitcoin. GBTC is traded on the OTCQX market and holds approximately 171,000 BTC.

However, there are some key differences between MicroStrategy and GBTC. For one, MicroStrategy is a public company while GBTC is a private trust.

Additionally, GBTC charges a 2% annual management fee while MicroStrategy does not charge any fees for its Bitcoin holdings. .

It is also worth noting that GBTC is not currently available to retail investors while anyone can buy shares of MicroStrategy on the NAsdaq stock exchange.

At this time, it is unclear if MicroStrategy will eventually launch its own ETF but the company’s CEO has said that they are open to the idea if there is enough demand from investors.

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