Bitcoin ETF Approval Poses Threat to Michael Saylor’s Horde: Report

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  • Michael Saylor’s Bitcoin accumulation comes into question as speculation of a Bitcoin ETF approval grows. 
  • Analysts predict an ETF approval could affect the company’s shares, which often rise when BTC price goes up. 
  • Saylor’s company MicroStrategy has accumulated 158,245 BTC since the middle of 2020.

Analysts and experts have started to evaluate MicroStrategy Chairman Michael Saylor’s Bitcoin accumulation strategy as a U.S. Securities and Exchange Commission Bitcoin exchange-trusted funds (ETF) approval looms, Bloomberg reported.  

Indeed, the report noted that the SEC’s recent demeanor towards spot Bitcoin ETF filings has raised speculations of an imminent approval. These speculations have also been driven by the regulator’s decision not to challenge a Grayscale Bitcoin-ETF lawsuit victory. 

As a result, many in cryptocurrency communities predict that the regulator could possibly green-light an ETF soon. In the midst of the excitement, the report noted that experts have evaluated whether MicroStrategy’s shares will still continue to benefit from its Bitcoin holdings. 

Indeed, Michael Saylor started accumulating Bitcoin in mid-2020, when the token’s prices neared their peak. Since then, Saylor has purchased over $5.5 billion worth of Bitcoin as of September 2023. 

The report mentioned that Saylor’s Bitcoin purchase came on the need to reduce MicroStrategy’s cash holdings to shield against the perceived threat of inflation. Furthermore, a revenue slowdown at the company also led to the company adding Bitcoin accumulation as a focus. 

According to the report, MicroStrategy’s shares have almost tripled since then. Furthermore, TD Cowen analyst Lance Vitanza stated that MicroStrategy’s Bitcoin holdings of 158,245 have boosted its share prices. However, the analyst estimates that an ETF approval in the coming months poses a significant risk to the shares’ growth. 

Despite the predicted impact, Vitanza said MicroStrategy could also benefit from an ETF approval. According to the analyst, a bitcoin bull rally could happen following an ETF approval, which in turn will boost the share price. Meanwhile, BTC has crossed into the $35,000 territory following a 1.11% rise in the past 24 hours, according to CoinMarketCap data. On the weekly price chart, the token has raked in 2.51%.

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