MicroStrategy CEO predicts Bitcoin ETFs will outperform gold and rival the S&P 500, as the company plans a $700 million Bitcoin investment. Learn more.

MicroStrategy CEO Michael Saylor foresees Bitcoin ETFs surpassing gold and rivaling the S&P 500, as the company gears up for a $700 million Bitcoin investment.

“Initially, we viewed Bitcoin as a potential competitor to gold, but it has swiftly climbed the ranks, now vying closely with the S&P 500 Index ETFs,” Saylor remarked.

As per the MicroStrategy chief executive, Bitcoin ETFs are poised to outperform gold ETFs, traditionally prominent commodity ETFs in the United States.

Research from BitMEX suggests that, in less than two months since their inception, Bitcoin ETFs have attracted $8.5 billion in net inflows despite notable outflows from the Grayscale Bitcoin Trust.

The iShares Bitcoin Trust and Fidelity Wise Bitcoin Origin Trust witnessed historic inflows within their inaugural month, securing positions among the 20 most-traded ETFs.

On Mar. 5, BlackRock’s Bitcoin ETF witnessed a record-setting net inflow of $788 million, marking an unprecedented daily increase for the investment vehicle. Traders seemed to capitalize on a market dip.

Saylor characterized ETFs as a universal API for investors, simplifying transitions between funds and granting access to Bitcoin. This advancement has reduced barriers to utilizing Bitcoin (BTC) as collateral, presenting mainstream investors with new financial prospects and capabilities.

Saylor emphasized the significance of ETFs in broadening financial accessibility and underscored the fund’s role in integrating Bitcoin into traditional investment portfolios.

MicroStrategy enlarges Bitcoin-focused note offering

MicroStrategy unveiled a $700 million private offering of 0.625% convertible senior notes due 2030, with an opportunity for initial buyers to acquire an additional $100 million in notes.

Initially slated at $600 million, the expanded offering is set to finalize by Mar. 8. Subject to certain conditions, the notes, bearing semi-annual interest, could be converted into cash, MicroStrategy class A common stock, or a combination thereof.

MicroStrategy intends to utilize the proceeds to acquire more Bitcoin and for general corporate objectives, anticipating net proceeds of approximately $684.3 million or potentially up to $782 million if all additional notes are sold.