Michael Saylor, co-founder and chief executive officer of MicroStrategy (MSTR), announced that the company will rebrand as a Bitcoin development company. The announcement was made during an interview with CNBC.
MicroStrategy Will Rebrand As Bitcoin Development Company
Saylor attributes the recent rise in Bitcoin's price to the listing of Bitcoin exchange-traded funds (ETFs), which he believes have created a significant imbalance in the cryptocurrency's supply. “Ten times as much demand for Bitcoin is coming into these ETFs as there is supply from natural sellers, who are miners,” he said.
According to Saylor, there has been pent-up demand for an individually accessible Bitcoin product for nearly a decade. With the launch of these ETFs, mainstream investors will finally have access to Bitcoin, providing a capital injection to the asset class.
Saylor also explained that Bitcoin is currently in high demand because it is uncorrelated with traditional risk assets and has no exposure to any country, company, quarterly product cycle competitor, weather, war, employee base or supply chain.
The decision to rebrand MicroStrategy as a Bitcoin development company reflects its strategy to accumulate more Bitcoins and stimulate the growth of the Bitcoin network.
“This is a natural decision for us given the success of our Bitcoin strategy and our unique status as the world's largest publicly traded Bitcoin holding company,” Saylor said.
Saylor argued that MicroStrategy's model offers more flexibility than an investment trust, allowing the company to develop software, generate cash flow, tap the capital market, accumulate Bitcoin for its shareholders and develop the Bitcoin network.
*This is not investment advice.
