Saylor: Bitcoin ETFs surpass traditional assets, MicroStrategy expands to $700m investment

MicroStrategy CEO Michael Saylor sees Bitcoin ETFs outpacing gold and rivaling the S&P 500, with the company preparing a $700 million Bitcoin investment.

“We thought that maybe Bitcoin was a competitor to gold, but it has actually run up the leaderboard, and now it’s starting to nip at the heels of the S&P 500 Index ETFs,” Saylor said.

According to the MicroStrategy chief executive, Bitcoin ETFs could soon outperform gold ETFs, traditionally the largest commodity ETFs in the United States.

BitMEX Research indicates that, since its inception less than two months ago, Bitcoin ETFs have attracted $8.5 billion in net inflows despite significant outflows from the Grayscale Bitcoin Trust.

The iShares Bitcoin Trust and Fidelity Wise Bitcoin Origin Trust recorded historic inflows within their first month, placing them among the 20 most-traded ETFs.

On Mar. 5, BlackRock’s Bitcoin ETF saw a record-setting net inflow of $788 million, marking an unprecedented daily increase for the investment vehicle. Traders appeared to take advantage of a dip in the market.

Saylor described ETFs as a universal API for investors, facilitating easy transitions between funds and providing access to Bitcoin. This innovation has lowered the barriers to using Bitcoin (BTC) as collateral, offering mainstream investors new financial opportunities and functionalities.

Saylor stressed the importance of ETFs in expanding financial accessibility and highlighted the fund’s role in integrating Bitcoin into traditional investment portfolios.

MicroStrategy upsizes Bitcoin-focused note offering

MicroStrategy announced a $700 million private offering of 0.625% convertible senior notes due 2030, with an option for initial purchasers to buy an additional $100 million in notes.

Initially set at $600 million, the upsized offering is expected to close by Mar. 8. Under certain conditions, the notes, bearing semi-annual interest, may be converted into cash, MicroStrategy class A common stock, or a mix.

MicroStrategy plans to use the proceeds to purchase more Bitcoin and for general corporate purposes, expecting net proceeds of approximately $684.3 million or up to $782 million if the additional notes are fully purchased.

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