MicroStrategy CEO: Our Stock is Better Than GBTC! New CEO Talks Initial Investment Decision: Considered Art Before

MicroStrategy's new CEO Phong Le talked about the process of initially choosing Bitcoin as an "alternative asset" investment option. In fact, at that time, even art and gold were considered, and he believed that the company's stock had a competitive advantage in tracking the performance of Bitcoin compared to products like GBTC.

Supporting Bitcoin as a Reserve Asset

Former CEO of the U.S. listed company MicroStrategy, Michael Saylor, announced his resignation on 8/2 and will continue to lead Bitcoin acquisitions in the future as a board member, focusing on innovation and long-term strategy.

CFO Phong Le has been authorized to manage the overall company operations as the CEO. According to reports from CoinDesk and Seeking Alpha, during a conference sponsored and hosted by investment bank Canaccord Genuity, he mentioned the idea of supporting MicroStrategy's use of Bitcoin as a reserve asset.

Why Choose Bitcoin in the First Place?

MicroStrategy initially planned diversification and embraced "alternative assets" in August 2020, entering Bitcoin for the first time on 8/11, with the board unanimously agreeing on Bitcoin as the primary reserve asset on 9/11.

However, Phong Le mentioned that U.S. treasuries, corporate bonds, gold, commodities, real estate, and even art were considered during the process, with digital assets continually being discussed among executives.

Given MicroStrategy's core business in software services involving characteristics such as startups and development, Bitcoin ultimately emerged as the winner.

Offered Choices to Shareholders

Phong Le emphasized that in the early stages of buying Bitcoin in 2020, MicroStrategy conducted a Dutch auction, offering an exit option at a 15% premium to users not interested in Bitcoin.

However, MicroStrategy only bought back $60 million worth of stock, far below their expected $250 million.

Uniqueness of MicroStrategy Stock

Phong Le stated that Bitcoin boosted stock prices, trading volume, and transformed MicroStrategy from a dormant software company. MicroStrategy stock is a unique tool for companies and investors looking to hold Bitcoin:

MicroStrategy MSTR has some advantages as an alternative product to track Bitcoin prices, while choosing similar investment targets like GBTC incurs additional costs.

As of now, MicroStrategy has reduced its losses from -$1.49 billion to -$997 million. Current data:

• Amount of Bitcoin held: 129,699 BTC
• Potential average price: $30,664
• Potential cost: $3.98 billion
• Unrealized holding loss: -$997 million, -25.06%