The amount of Bitcoin held by MicroStrategy has lagged behind that of BlackRock’s spot exchange-traded fund (ETF).
As of March 8, almost 40 trading sessions after the Securities and Exchange Commission approved nine new funds on January 10, BlackRock’s IBIT had 197,943 Bitcoin, valued at almost $13.5 billion, according to statistics provided by BitMEX Research.
With the exception of Grayscale’s GBTC, the recently introduced Bitcoin ETFs together include assets worth $28 billion, reflecting the ongoing institutional demand driving up the price of the cryptocurrency. For the first time, the price of Bitcoin surpassed $70,000 on March 8.
X (formerly Twitter) reports that OTC trading platforms are running low on Bitcoin and are resorting to public exchanges to meet orders. OTC desks usually service large-volume trading, including institutional investors.
As part of its corporate treasury strategy, technology company MicroStrategy has amassed a portfolio of 193,000 BTC even though it does not issue ETFs. The software business uses debt to finance operations and investments as part of a leveraged operating strategy.
MicroStrategy is intensifying its approach to Bitcoin. The business recently revealed intentions to launch a debt offering with the goal of obtaining more than $600 million to bolster its holdings of bitcoin.
MicroStrategy (MSTR) shares was dubbed a “leveraged Bitcoin ETF” due to its strategy of focusing solely on Bitcoin. Thus far, the strategy has shown to be successful. Over the past year, MSTR has increased by 642%, far surpassing Bitcoin’s 244% increase during the same time frame.
Michael Saylor, CEO of MicroStrategy, has no intention of selling the company’s Bitcoin holdings. “I’ll always be purchasing the top. Saylor stated, “Bitcoin is the exit strategy,” in an interview with Bloomberg on February 20.
Even though the market capitalizations of gold, the S&P 500, and real estate are all far more than those of Bitcoin, the CEO claims that the cryptocurrency is “technically superior” to these three asset classes.
