Welcome back to โSquawk Box.โ This morning Bitcoin crossing the $70,000 mark for the first time Friday. This morning, it is above $72,000. Joining us now to talk Bitcoin is Michael Saylor of MicroStrategy. At the end of last month, the company held about 200,000 Bitcoins. Michael, thank you for joining us.
You have been early and courageous, and you continue to double down. Letโs discuss where you think Bitcoin is headed and how you view MicroStrategy as a proxy for Bitcoin now that ETFs are available to the public.
Bitcoin: The Digital Gold
Bitcoin is often referred to as digital gold and is poised to overshadow traditional gold as an investment choice. It possesses all the great attributes of gold without any of its defects. The ability to quickly transfer value globally is a significant advantage that Bitcoin has over traditional gold, attracting capital away from risk assets and ETFs like SPY. The rise of ETFs incorporating Bitcoin into their portfolios, such as BlackRock Global Opportunities Fund and Strategic Income Opportunities Fund, highlights the acceptance of Bitcoin as a legitimate asset class. The forthcoming halvings in Bitcoinโs supply imply a reduction in natural sellers, leading to a price adjustment to meet growing investor demand.
- Bitcoin is a digital gold alternative
- It is set to divert capital from traditional assets and ETFs
- ETFs and funds are integrating Bitcoin into their portfolios
- Halvings will reduce natural sellers, increasing Bitcoinโs value
MicroStrategy: A Unique Investment Opportunity
MicroStrategy can be seen as a high-performance player in the Bitcoin investment space compared to behemoths like BlackRock. While BlackRock functions like a containership due to its ability to efficiently handle massive capital inflows daily with a 25 basis point fee, MicroStrategy operates more like air freight. With an unmatched leverage advantage, MicroStrategy can secure significant loans at minimal interest rates to invest in the best opportunities, such as Bitcoin. This intelligent use of leverage contributes to volatility and performance, attracting more capital for further leveraging. MicroStrategyโs approach offers shareholders a creative and compelling way to gain exposure to Bitcoin with the potential for enhanced returns, making it an attractive alternative for those interested in Bitcoin investment but seeking protection against downside risks.
- MicroStrategy provides a unique investment proposition for Bitcoin exposure
- The companyโs leverage strategy enhances returns and volatility
- Shareholders benefit from increased Bitcoin holdings per share
- MicroStrategy offers a yield against shares with tax-efficient benefits
Investing in Bitcoin with MicroStrategy
If you are intrigued by Bitcoin but hesitant to invest directly in the cryptocurrency at an all-time high, MicroStrategy presents an opportunity to participate in Bitcoinโs potential upside with downside protection. By issuing debt and investing in Bitcoin reserves, MicroStrategy offers shareholders a yield against their shares in a tax-efficient manner. This unique approach appeals to equity maximizers and hedgers seeking exposure to Bitcoinโs upside with protection against market volatility. While traditional ETFs charge a fee for Bitcoin exposure, MicroStrategyโs innovative convertible bond structure provides investors with a more appealing alternative.
- MicroStrategy offers a way to invest in Bitcoin with downside protection
- Shareholders benefit from a yield against their shares
- The companyโs convertible bond structure provides unique investment opportunities
- Investors gain exposure to Bitcoinโs volatility and performance through MicroStrategy
Hot Take
Bitcoin remains a superior investment compared to traditional assets like gold, equity, bonds, and real estate due to its digital nature and global accessibility. With its ethical framework and decentralized nature, Bitcoin emerges as the ultimate investment choice for individuals seeking to diversify their portfolios and participate in the digital economy.
Nathan Coben emerges as an alchemist of the crypto world, seamlessly blending the roles of analyst, researcher, and editorial maestro. In the intricate tapestry of digital currencies, Nathan navigates with a compass of insight, crafting pathways of understanding that captivate minds across the spectrum. His flair for deciphering the enigmatic threads of cryptocurrency intricacies is an art he weaves into his editorial tapestry, transforming complexity into a harmonious composition of clarity.