Why MicroStrategy can buy BTC but not other institutions?

[aoluain]

MicroStrategy is heavily invested in the Bitcoin network, not just in bitcoins. Even though I have like months to watch what's happening with MicroStrategy and the like, I remember very well Sailor being obsessed with bitcoin and lightning.

I believe the answer to your question is that most institutional investors prefer the convenience and regulatory oversight an ETF can provide.

Microstrategy and Michael Saylor are indeed fully into "Bitcoin".  Institutional investors
generally are not buying Bitcoin they are more happy to have a certificate to say they own
Bitcoin leaving it up to the ETF provider to make the transaction of acquiring the actual Bitcoin.

Its also worth noting that Microstrategy is a public liability company so they first have to
seek approval to buy Bitcoin before they do so and then have to make the purchase
public so everyone knows, what they do is not a bragging sort of notification, they are
required to do so.

Its the opposite with private companies, a lot of them in general could very well be buying
Bitcoin and we are not aware of it.

[ImThour]

Because MicroStrategy didn't waited for ETFs to launch to buy bitcoins, they simply bought it from OTC Trading platforms, from exchanges directly.
Other big institutions are waiting for ETFs, which will take time and it involves a lot of paper work and legal process. They choosing difficult way to be their own bank.

Crazy shit, isn't it? 

[Taskford]

If I understood it correctly spot BTC ETF will allow institutional investors to but BTC, and hence a lot of people waiting spot BTC ETF to be approved. But then how come MicroStrategy is already heavily invested in BTC? Why they can buy it, while other institutional investors waiting for ETF?

Because MicroStrategy knows the potential of bitcoin and they already know how to deal with several market pressure that's why they are here buying more. While other institutional investors still skeptical about bitcoins existence since maybe they don't know yet where to start or if they could even start dealing with bitcoin. Maybe we can't blame them yet since to many warnings spreading about the risk of investing of it so maybe those institutional investors believe on negative about it for now and they didn't see the positive since no one make them understand on every situation happened on bitcoin.

[tranthidung]

Microstrategy and Michael Saylor are indeed fully into "Bitcoin".  Institutional investors
generally are not buying Bitcoin they are more happy to have a certificate to say they own
Bitcoin leaving it up to the ETF provider to make the transaction of acquiring the actual Bitcoin.

MicroStrategy is a very interesting case for Bitcoin institutional investors. They did not observe this market but actually joined it and did investment seriously. I also don't see them over leverage for investment which makes their investment is safe in long term.

In the past, we talk about Satoshi's lesson

Satoshi is not awesome because he was watching the crypto world and had a brilliant idea. He's awesome because upon having this idea, he carried it out.

In future, we will talk about Microstrategy lesson.

[Hamza2424]

If I understood it correctly spot BTC ETF will allow institutional investors to but BTC, and hence a lot of people waiting spot BTC ETF to be approved. But then how come MicroStrategy is already heavily invested in BTC? Why they can buy it, while other institutional investors waiting for ETF?

Hmm bro this is not that simple the elite families always go with the strategy as they never bring their investment in risky markets as you know they own a lot of business so they always prefer going with the legal teams, and law enforcement institutes and I hope you know about the SEC's policy from last year. All of them are waiting for a good time, in my view ETF approval is gonna be a good green signal for them.

[suzanne5223]

If I understood it correctly spot BTC ETF will allow institutional investors to but BTC, and hence a lot of people waiting spot BTC ETF to be approved. But then how come MicroStrategy is already heavily invested in BTC? Why they can buy it, while other institutional investors waiting for ETF?

Institutional investors can invest in Bitcoin without the Bitcoin ETF but BTC ETF will only make institutional investors gain access to BTC investment within the regulated frameworks of traditional financial markets. That's the BTC ETF will give institutional investors some sense of guarantee that they are investing in genuine assets.
MicroStrategy is not an institutional investor and it's a business intelligence financial investment company. They handle crypto investment in charge of investors that are scared or don't have knowledge about crypto investment.

[imamusma]

Many other institutional investors don't need to do the same as MicroStrategy does, and that's because each of them has their own financial policies. Some say it's for safety and convenience, and I agree with that. But if they aren't brave enough to take the plunge in the first place and prefer to wait for the ETF, then perhaps then maybe they won't get a bigger return than MicroStrategy.

[Joan of Arc official]

I believe the company has trapped itself in a kind of DCA strategy to make up for last year's losses. (which must be in excess of 1 billion?).
So I don't know if they have any choice but to continue investing in BTC.

I'm pretty sure MicroStrategy has some smart-enough people to think that sunk-cost fallacy isn't the way to go. It's simply just the fact that Saylor is really bullish on bitcoin, and the fact that you really can't predict price in the short-mid term — hence MSTR being down months ago.

Yeah, really bullish on BTC, and maybe too much.
Because as you remind, you can't really predict the price. Don't forget playing with the company's funds is not the same as playing with your personnal finance. Different responsabilities since you have employees, shareholders, cash flow,...
You don't the MSTR going down to 0.

(edited to correct a typo)

[Coyster]

Other big institutions are waiting for ETFs, which will take time and it involves a lot of paper work and legal process. They choosing difficult way to be their own bank.

They are not even going to be their own bank, if you buy Bitcoin via Bitcoin spot ETF you are not your own bank because you don't have the keys to your Bitcoin and you don't even have to own any Bitcoin wallet at all, you basically just invest via the broker/firm that offers the ETF and you have to trust them.

[mk4]

Yeah, really bullish on BTC, and maybe too much.
Because as you remind, you can't really predict the price. Don't forget playing with the company's funds is not the same as playing with your personnal finance. Different responsabilities since you have employees, shareholders, cash flow,...
You don't the MSTR going down to 0.

(edited to correct a typo)

The mere reason why they're averaging in, is actually because they know you can't predict short-mid term price.

And it's not even "playing with the company's funds" — there's a reason why holdings companies exist.