{"id":10535,"date":"2024-02-08T14:21:38","date_gmt":"2024-02-08T12:21:38","guid":{"rendered":"https:\/\/forklog.com\/en\/microstrategy-shifts-focus-to-bitcoin-development\/"},"modified":"2024-02-08T14:21:38","modified_gmt":"2024-02-08T12:21:38","slug":"microstrategy-shifts-focus-to-bitcoin-development","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/microstrategy-shifts-focus-to-bitcoin-development\/","title":{"rendered":"MicroStrategy Shifts Focus to Bitcoin Development"},"content":{"rendered":"<p>MicroStrategy is set to position itself as a &#8220;Bitcoin and Bitcoin-based product development company,&#8221; according to its founder, Michael Saylor.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">\u20bf???????: MicroStrategy announces plans to be \u201cworld&#8217;s first <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#bitcoin<\/a> development company&#8221;.<\/p>\n<p>The company says it will develop <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\">#bitcoin<\/a> blockchain network applications and software.<\/p>\n<p>Listen to the founder Michael <a href=\"https:\/\/twitter.com\/saylor?ref_src=twsrc%5Etfw\">@Saylor<\/a> explain at MicroStrategy\u2019s latest Q4 earnings call\u2026 <a href=\"https:\/\/t.co\/KMiTctGHEH\">pic.twitter.com\/KMiTctGHEH<\/a><\/p>\n<p>\u2014 Documenting \u20bfitcoin ? (@DocumentingBTC) <a href=\"https:\/\/twitter.com\/DocumentingBTC\/status\/1755309307594219902?ref_src=twsrc%5Etfw\">February 7, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Since its inception, MicroStrategy has focused on creating and supporting analytics software.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/1-908.webp\" alt=\"1-908\" class=\"wp-image-225628\"\/><figcaption class=\"wp-element-caption\">MicroStrategy&#8217;s unique value proposition structure. Source: MicroStrategy.<\/figcaption><\/figure>\n<p>The illustration above indicates that shareholder value is based on Bitcoin reserves, as well as the development of products and the digital gold community.<\/p>\n<p>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.<\/p>\n<p>In the second, through initiatives supporting digital gold and software development focused on BI, AI, cloud computing, Bitcoin, and the Lightning Network.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWhat does this mean? We will do everything possible to develop the first cryptocurrency network, purchase as many coins as possible, and maximize our shareholders&#8217; profits,\u201d<\/em> explained Saylor.<\/p>\n<\/blockquote>\n<p>The founder of MicroStrategy compared the company&#8217;s activities to a spot exchange-traded fund based on the first cryptocurrency by several criteria.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/2-709.webp\" alt=\"2-709\" class=\"wp-image-225627\"\/><figcaption class=\"wp-element-caption\">Comparison of MicroStrategy and spot Bitcoin ETFs. Source: MicroStrategy.<\/figcaption><\/figure>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>During the presentation, Saylor called the approval of the exchange product a \u201ccatalyst\u201d for popularizing Bitcoin as the best means of preserving capital.<\/p>\n<p>At a <a href=\"https:\/\/www.insidermonkey.com\/blog\/microstrategy-incorporated-nasdaqmstr-q4-2023-earnings-call-transcript-1254853\/6\/\">press conference<\/a> with analysts, the company&#8217;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.<\/p>\n<p>The top manager promised to present new blockchain-based security offerings for the first cryptocurrency at the next event.<\/p>\n<p>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).<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"498\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/3-419-1024x498.png\" alt=\"3-419\" class=\"wp-image-225625\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/3-419-1024x498.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/3-419-300x146.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/3-419-768x374.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/3-419-1536x747.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/3-419-2048x996.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Dynamics of MicroStrategy&#8217;s Bitcoin reserves. Source: MicroStrategy.<\/figcaption><\/figure>\n<p>Back in late 2023, Saylor suggested Bitcoin could either fall to zero or rise to $1 million.<\/p>\n<p>Earlier, the founder of MicroStrategy identified catalysts for a tenfold increase in the value of the first cryptocurrency.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MicroStrategy is set to position itself as a &#8220;Bitcoin and Bitcoin-based product development company,&#8221; according to its founder, Michael Saylor. \u20bf???????: MicroStrategy announces plans to be \u201cworld&#8217;s first #bitcoin development company&#8221;. The company says it will develop #bitcoin blockchain network applications and software. Listen to the founder Michael @Saylor explain at MicroStrategy\u2019s latest Q4 earnings [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10534,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,83,1192,1208,1207],"class_list":["post-10535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-business","tag-developers","tag-michael-saylor","tag-microstrategy"],"aioseo_notices":[],"amp_enabled":true,"views":"53","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10535","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=10535"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10535\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/10534"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=10535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=10535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=10535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}