Saylor Strikes Again on Claims MicroStrategy's Bitcoin Trove turns it into an ETF
No matter what it looks like, swims, or croaks, if the law says it isn't a duck, then it isn't – The Michael Saylor's Guide to Waterfowl Identification.
No, to the best of our knowledge, Saylor, CEO of business intelligence company MicroStrategy, has not written such a guide. If he did, however, one can imagine an entry like this turning on its head the famous “duck test” of observed reality that poet James Whitcomb Riley is said to have coined.
It undoubtedly mirrors the bill Saylor used on Twitter on Friday night to dismiss widespread speculation that the recent massive purchases of Bitcoin by his company has turned into an investment firm or even a de facto Bitcoin Exchange-Traded Fund (ETF) are.
While some have argued that investors in MicroStrategy (MSTR), which is listed on Nasdaq, are now effectively buying a regulated investment vehicle that exposes them to the leading cryptocurrency, Saylor turned to legal quotes to argue that his company nothing like that is:
Since August, MicroStrategy has bought $ 475 million worth of Bitcoin, and the company is showing no sign of stopping. Last week, MSTR sold $ 650 million of convertible senior notes to raise funds to buy even more bitcoin.
During the company's Bitcoin buying frenzy, MSTR shares more than doubled as many investors viewed holding shares in the company as a way to get exposure to Bitcoin, much like holding stocks in an ETF But in his tweets on Friday, Saylor was essentially saying that it doesn't matter what these investors think. The words "in force" make all the difference.
With his usual chutzpah, Saylor draws a line in the sand by saying that MSTR's purchase of 40,824 Bitcoin is merely the company's decision to hold its reserves in a currency other than US dollars, regardless of how investors choose to do so see or why they are loading on MSTR stocks. Regardless of the fact that Saylor, who controls 70% of MSTR's shares, was the biggest beneficiary of the stock's Bitcoin surge.
By making public references to applicable laws / decisions, Saylor may also be hoping to dissuade the US Securities and Exchange Commission from reconsidering their own work on waterfowl identification. This revision could lead to a different decision on Bitcoin and thus slightly change the species of its goose.