- Michael Saylor says MicroStrategy could explore Bitcoin futures in the future.
- Saylor says buying MicroStragey is an easier way for institutional investors to hold Bitcoin.
- MicroStrategy reported a loss in Q4 2022.
Michael Saylor, co-founder and executive chairman of MicroStrategy Inc., has stated that the enterprise-software firm may explore futures contracts on the CME Group exchange in the long term.
In an interview with Bloomberg TV on Monday, Saylor admitted that the company had explored but ultimately opted against lending out its Bitcoin through other firms, some of which went bankrupt in 2022.
The former MicroStrategy CEO said:
In the future, we will always consider forward yields. We may find a way to generate yield this way.
When discussing why investors should buy MicroStrategy shares instead of directly buying Bitcoin, Saylor cited the lack of accessibility for institutional investors when buying cryptocurrencies. According to Saylor, institutional investors can use MicroStrategy to gain indirect exposure to Bitcoin without directly owning the cryptocurrency.
Saylor also went on to explain that the process of buying Bitcoin through a cryptocurrency exchange is tedious and can take a lot of time. “I have gone through the steps of KYC with a bitcoin exchange. It could take up to three months to actually get the account to trade and buy the underlying asset,“ he said.
The CEO also explained that he had no intention of splitting up MicroStrategy’s corporate software and Bitcoin operations because they are intertwined. MicroStrategy’s Bitcoin investments started in August 2020. According to data, the business held roughly 132,500 bitcoins worth about $2.2 billion as of December.
Meanwhile, MicroStrategy’s Bitcoin portfolio has incurred another quarterly loss. The Virginia-based firm lost $197.6 million in the same quarter due to an impairment charge on its Bitcoin holdings. The value much exceeds the $727,000 impairment recorded in the preceding quarter.
Despite this, the firm continued accumulating bitcoin throughout the fourth quarter, reaching 132,500 by the end of the period. Initially, the business sold 704 BTC to cover its tax obligations, but just two days later, it purchased 810 BTC. Nevertheless, MicroStrategy’s BTC holdings have surged by almost $850 million thanks to bitcoin’s rally of over 40% since the start of the year.
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