Bitcoin or not bitcoin? That is the question! – Michael Saylor, CEO of MicroStrategy, announced on September 22 that the firm may well resell all of its bitcoins at any time. This statement raised many questions, especially since the company had justified its Bitcoin bet in a fairly ideologically marked way.
A massive and recent investment
Michael Saylor had a very strong opinion on Bitcoin. In 2013, for example, he announced the death of Bitcoin by comparing this technology to a casino game, based on luck.
Nevertheless, change of course on August 11, 2020. Indeed, MicroStrategy then announced the purchase of $ 250 million in bitcoins, shaking the cryptosphere.
Finally, on September 16, the company continued this momentum, this time purchasing 38,000 BTC , bringing its total jackpot to around $ 425 million. This acquisition of bitcoins by an institution listed on the NASDAQ had been interpreted as a positive signal for investors.
Michael Saylor justified this purchase by explaining that virtual currency was above all a non-sovereign store of value. In a context of economic instability, safe havens are coveted, and Bitcoin is king.
“We are quite convinced that bitcoin is less risky than holding cash and less risky than holding gold. ” – Michael Saylor
Indeed, gold is always exploited, especially in times of crisis. This overexploitation decreases future returns, which makes the asset less attractive.
According to Saylor, bitcoin’s volatility isn’t much of a reason to sell. Still, the man explains that he won’t hesitate to sell if altcoin yields skyrocket.
Selling such a large amount of bitcoin could easily cause the price to drop significantly, as has happened in the past. Although MicroStrategy acquired the bitcoins in 78,338 separate transactions, the CEO says reselling them could be much easier. Indeed, although he explains that his company is now much more comfortable keeping this substantial sum in bitcoins than in dollars, he told Bloomberg that he could just as well “liquidate 200 million dollars in bitcoins ” with a snap of your fingers if needed.
Saylor also indicated that its top 10 shareholders were very favorable to investing more in bitcoin. This information, quite contradictory, suggests that the company is not seeking to emancipate itself from this crypto quickly.
In 2020, many financial institutions took their bet and started taking bitcoin seriously. Business to follow, therefore, depending on the brutal market variations, no doubt!
Some days ago we wrote about Grayscale buying-183-million worth of bitcoin in 3 days.