MicroStrategy (MSTR) founder interviewed by Bloomberg, discussing the dual impact of Bitcoin spot ETF and halving on BTC’s demand and supply, which will bring about a major bull market for BTC.
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Bitcoin spot ETF is the biggest breakthrough on Wall Street in 30 years
Bitcoin halving further reduces selling pressure
MicroStrategy (MSTR) is more intuitive than ETF
Bitcoin spot ETF is the biggest breakthrough on Wall Street in 30 years
The host asked, how will the launch of the Bitcoin spot ETF ultimately drive the price of Bitcoin?
Michael Saylor said:
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This event cannot be underestimated. It may be the biggest development on Wall Street in 30 years. The previous important event was the launch of the S&P 500, which allowed investors to invest in 500 companies with just one click. Currently, most of the funds in the Bitcoin market come from long-term holders and retail investors. Until the ETF, mainstream institutions did not have a suitable channel to invest in Bitcoin. Therefore, I believe that the approval of the spot ETF in January will be a major event.
Michael Saylor did not give his target price.
Bitcoin halving further reduces selling pressure
In addition to stimulating demand, Michael Saylor also pointed out that halving will reduce supply:
There will be a supply shock in April, as approximately 900 BTC are sold daily by natural sellers and miners, and this amount will decrease to 450 BTC per day after halving. Supply will be scarce, and the Bitcoin spot ETF will increase demand by 2 to 10 times. Coupled with the public’s desire for a long-term holding ideal asset, I believe that 2024 will be a major bull market for BTC.
MicroStrategy (MSTR) is more intuitive than ETF
Now that we have the Bitcoin spot ETF, why should we buy MicroStrategy?
Michael Saylor said that ETFs do not provide leverage and charge fees, while MicroStrategy can not only buy BTC with idle cash but also operate through the comprehensive income statement. For many years, it has borrowed at 0% interest and purchased BTC. He pointed out:
You can think of ETFs as shipping companies, very efficient, long-distance travel, carrying a large amount of funds; MicroStrategy is more like an airline, without a large cargo capacity, but faster and higher performance. We provide leverage to users without charging fees, providing Bitcoin holders with a high-performance tool.
He emphasized that MicroStrategy continues to acquire BTC in various ways and strives for more Bitcoin in all of its shareholders’ holdings.
Michael Saylor finally mentioned the updated accounting standards for cryptocurrencies, which he believes is a major advantage for companies holding coins. However, he revealed that MicroStrategy has not yet planned how to make good use of the new accounting standards, and he will leave this decision to the professionals within the company to evaluate.
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FASB approves fair value accounting standards to be implemented by the end of the year, benefiting companies holding cryptocurrencies such as MicroStrategy
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FASB
Michael Saylor
MicroStrategy
Bitcoin spot ETF
Further reading
Forbes 2024 Prediction: Improved Cryptocurrency Accounting Rules and Possible Delisting of USDT?
Advantages of Corporate Holdings? The first US cryptocurrency accounting rule: reflecting the gains and losses of holdings based on fair value.