MicroStrategy is set to position itself as a “Bitcoin and Bitcoin-based product development company,” according to its founder, Michael Saylor.
₿???????: MicroStrategy announces plans to be “world’s first #bitcoin development company”.
The company says it will develop #bitcoin blockchain network applications and software.
Listen to the founder Michael @Saylor explain at MicroStrategy’s latest Q4 earnings call… pic.twitter.com/KMiTctGHEH
— Documenting ₿itcoin ? (@DocumentingBTC) February 7, 2024
Since its inception, MicroStrategy has focused on creating and supporting analytics software.
The illustration above indicates that shareholder value is based on Bitcoin reserves, as well as the development of products and the digital gold community.
In the first instance, the firm is prepared to attract resources by issuing new shares and increasing debt, as well as utilizing generated cash flows.
In the second, through initiatives supporting digital gold and software development focused on BI, AI, cloud computing, Bitcoin, and the Lightning Network.
“What does this mean? We will do everything possible to develop the first cryptocurrency network, purchase as many coins as possible, and maximize our shareholders’ profits,” explained Saylor.
The founder of MicroStrategy compared the company’s activities to a spot exchange-traded fund based on the first cryptocurrency by several criteria.
Saylor noted the absence of management fees, as provided in ETFs, and active control over the capital structure. This stems from differences in organizational structures.
The Bitcoin maximalist also emphasized that unlike an exchange-traded fund, MicroStrategy has the ability to create additional value, reinvest cash generated by its traditional business into digital gold ($726 million in total), and attract debt financing through various financial instruments.
During the presentation, Saylor called the approval of the exchange product a “catalyst” for popularizing Bitcoin as the best means of preserving capital.
At a press conference with analysts, the company’s president and CEO, Phong Le, recalled the Bitcoin and Lightning for Corporations MicroStrategy World event in 2023, during which the firm presented a rewards service based on the L2 solution.
The top manager promised to present new blockchain-based security offerings for the first cryptocurrency at the next event.
In February, MicroStrategy acquired an additional 850 BTC worth $37.2 million, bringing its digital gold reserves to 190,000 BTC (~$8.17 billion at the time of writing).
Back in late 2023, Saylor suggested Bitcoin could either fall to zero or rise to $1 million.
Earlier, the founder of MicroStrategy identified catalysts for a tenfold increase in the value of the first cryptocurrency.