02MicroStrategy’s move to continue accumulating bitcoin stocks has also drawn much derision from critics. Founder of the world’s largest cryptocurrency exchange, Binancehowever, gave this purchase a big thumbs up.
Saylor: we continue to accumulate sats
Michael Saylor, CEO of MicroStrategy, recently announced the purchase of additional bitcoins by his company. The software company has thus strengthened its position in holding bitcoins by another 480 coins with a total value of about 10 million dollars.
These coins were purchased at an average price of $20,817, bringing MicroStrategy’s total BTC holdings to an impressive 129,699 Bitcoins. MicroStrategy has adopted a slump buying strategy over the past two years, with the company paying a total of $3.98 billion for them.
On June 29, the company filed an 8-K filing with the Securities and Exchange Commission. The latest purchase means that Saylor’s firm owns 1 bitcoin out of every 161 bitcoins that will ever exist.
The latest purchase caused a wave of derision, outrage and raised eyebrows as it took place at a time when the crypto market is under constant bear pressure. Many users thus made fun of the company’s decision to buy more bitcoins at a time when it was on the brink of financial distress. For everyone, let’s name Justin Wait from the Vox Podcast, who commented on MicroStrategy’s losses by saying:
“You may be having a bad day in the markets, but at least you don’t have Michael Saylor’s portfolio”
The head of Binance supported the move
While critics scoffed, Changpeng Zhao, CEO of Binance, defended Michael Saylor. He noted that the decision to acquire more bitcoins will ultimately benefit the company in the long run.
“Many may be laughing at him now, but Saylor will be the one who has the last laugh in time. Bookmark this tweet”
Many may laugh at him now, but Saylor will get the last laugh in time.
Bookmark this tweet. https://t.co/K8lZPCFc0J
— CZ 🔶 Binance (@cz_binance) June 29, 2022
After a sharp drop in price bitcoin (BTC) reports surfaced that the firm had received a margin call at a price of $21,000. The company’s CFO revealed in May that “Bitcoin would have to fall to half or around $21,000 before they get a margin call.” I add that MicroStrategy borrowed $205 million from Silvergate in March to buy more bitcoins. Compared to the current value of bitcoins held, however, it’s not much, and as Saylor himself said, it was much ado about nothing.
Conclusion
Although MicroStrategy is currently about $1.5 billion short on its bitcoin bet, another purchase confirms firm determination companies to continue to hold bitcoin.
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