According to CoinDesk, MicroStrategy reported weaker-than-expected fourth-quarter earnings on Tuesday, with the majority of its conference call presentation focusing on bitcoin and its unique value for investors. The company referred to itself as 'the world's first bitcoin development company' and stated its commitment to the continued development of the bitcoin network through financial market activities, advocacy, and technology innovation.
MicroStrategy, founded in 1989, was a software consulting business until mid-2020 when then-CEO Michael Saylor began moving the firm's treasury assets out of cash and into bitcoin. Today, the company is the largest publicly traded holder of bitcoin, with total holdings of 190,000 bitcoin or more than $8 billion. However, MicroStrategy's stock has suffered since the launch of spot bitcoin ETF products, falling 22% year-to-date even as the price of bitcoin remains relatively flat.
In its earnings presentation, MicroStrategy attempted to make its case as the superior alternative to bitcoin ETFs, arguing that investors in the company have active control over the capital structure and the ability to innovate value. The company also highlighted other factors, such as the difference in management fees and its ability to generate cash and tap capital markets for attractive debt deals. TD Cowen analyst Lance Vitanza wrote in a note on Tuesday that MicroStrategy shares continue to offer investors looking to gain exposure to bitcoin a number of important benefits relative to spot ETPs, and that a significant premium on bitcoin will continue to be justified.
