Part 7/10:
Another significant misconception surrounding MicroStrategy is the frequent comparison to Exchange-Traded Funds (ETFs) that hold Bitcoin. Critics often point to just buying Bitcoin outright rather than buying into MicroStrategy stock. However, buying MicroStrategy stock offers investors a unique way to gain exposure to Bitcoin with the added potential of leveraging corporate financial instruments to increase holdings.
Saylor has notably discussed the concept of MicroStrategy as a “Bitcoin refinery,” where the value generated from convertible bonds is reinvested into increasing the company's Bitcoin holdings. This gives shareholders an increasing amount of Bitcoin per share without the fee erosion that comes with traditional ETF structures.