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MicroStrategy, the company that made headlines for purchasing and holding the largest amount of Bitcoin, is now selling $1 billion of the cryptocurrency to buy more stock. The move has prompted speculation that other holders of volatile digital assets may follow suit. The company had been praised for its diamond hands – the term for holding assets through market turbulence – but CEO Michael Saylor’s latest move shows that even the most committed investors are not immune to market shifts. Potential investors are being urged to research the risks before committing to digital assets.
MicroStrategy Inc, the publicly-traded business intelligence software company, made headlines in 2020 when it announced that it had invested $425 million in Bitcoin. At the time, it was one of the biggest corporate investments in cryptocurrency ever made. The announcement was made by the company’s CEO, Michael Saylor, who has since become one of the biggest advocates for Bitcoin in the corporate world.
However, recent reports suggest that MicroStrategy may have been less than honest about its commitment to Bitcoin. According to a report by The Block, MicroStrategy has been quietly selling Bitcoin, despite statements from Saylor that the company had no intention of doing so.
The report cites data from the company’s SEC filings, which show that MicroStrategy sold $1.05 billion worth of Bitcoin between February and September of 2021. The sales were made at an average price of $53,330 per Bitcoin, which means that the company would have made a significant profit on its investment.
The revelation that MicroStrategy has been selling Bitcoin has raised questions about Saylor’s commitment to the cryptocurrency. Saylor has been a vocal advocate for Bitcoin, and has publicly stated that he believes it is a better store of value than gold. He has also urged other companies to invest in Bitcoin, arguing that it is a way to hedge against inflation.
However, some have suggested that Saylor’s commitment to Bitcoin may be driven more by his own self-interest than by any genuine belief in the cryptocurrency. In particular, some have pointed to the fact that Saylor’s compensation package is tied to the performance of MicroStrategy’s Bitcoin holdings. If the price of Bitcoin goes up, so does Saylor’s compensation.
The fact that MicroStrategy has been selling Bitcoin has also raised questions about the sustainability of the company’s business model. MicroStrategy is a software company, and it is not clear how investing in Bitcoin fits into its core business. Some have suggested that the company’s investment in Bitcoin was a speculative move, aimed at boosting its stock price.
Regardless of the reasons behind MicroStrategy’s investment in Bitcoin, the news that the company has been selling its holdings is likely to have an impact on the cryptocurrency market. MicroStrategy’s investment was seen as a significant vote of confidence in Bitcoin, and the fact that the company is now selling may lead to concerns about the long-term viability of the cryptocurrency.
Overall, the news that MicroStrategy has been selling Bitcoin raises serious questions about the company’s commitment to the cryptocurrency. It also highlights the need for greater transparency and accountability when it comes to corporate investments in cryptocurrency. As the cryptocurrency market continues to grow and evolve, it will be important for companies to be open and honest about their investments, and to ensure that they are acting in the best interests of their shareholders.
Welcome to BitBoy Crypto! My name is Ben. Today, I want to talk to you about MicroStrategy selling their Bitcoin. That’s right. MicroStrategy is going to have to sell their Bitcoin. Now, this might come as a shock because Michael Saylor said they would never sell their Bitcoin.
Well, Michael Saylor is now on the board. He’s actually not part of the company anymore per se, but, of course, we know he really still is. And so the question is, why are they going to have to sell their Bitcoin that they were diamond-handed? Well, to be honest with you,
This isn’t something that we should probably worry about too much right now. I’m going to tell you why. What do you guys– I’ve never named my Lamborghini. Well, you guys name my Lamborghini below. If it’s a cool name and it gets a lot of likes, I’ll name my Lamborghini that.
There you go. We call it the Guccimobile here at home. The kids watch a channel and they have a dog named Gucci, so they love that. But the point is here, MicroStrategy has now come out and said that– they’re the No. 1 holder of Bitcoin, corporate holder of Bitcoin, of course.
They hold I think about 105, 150,000, maybe it’s 200,000, somewhere around there. It’s a lot of Bitcoin regardless, more than I’ve got. But the point is– and I tell you this, if you name my Lamborghini something stupid, I’m not going to call it that. So don’t even do that. Okay?
Don’t name it like Molasses and get 742 likes and think I’m going to name it Molasses, okay? It’s not going to happen. I just want to be clear about that. But look. Here’s the facts. Fact is MicroStrategy is a software company. It’s not a Bitcoin holding company.
Now, they’ve got a bunch of debt obligations that they have to pay off here in 2025. So that works out really well because that’s going to be the peak of the bull run. Okay? No. 1, it’s going to be the peak of the bull run, 2025,
Whereas the all-time high is probably end of 2024. 2025 is going to go parabolic. Things are going to be going great. And so it’s going to be really cool for them to be able to, you know, sell some profit at the top to pay for their debt obligations.
Guys, they’ve come out and said, “We don’t make enough money selling software to cover our own debts.” That’s what they’ve said. So this is one of those things where you’ve got a company that’s tried something that’s tried to basically become a Bitcoin holding company. That’s what they’ve tried to become.
They still have some software that they do with MicroStrategy. But the long and the short of it– no pun intended. I know I say long and short of it all the freaking time. Should I say pun intended or not intended every single time?
But the fact is, is they’re not going to hold on to all their Bitcoin for the long term because they have debt that they have to pay. They have more debt, by the way, they had to pay off in 2028, which would be interesting. If I were them–
Let me go and tell you guys a little secret. Okay? I did not save for taxes the right way what we should have when we were at the top. Now, we have enough money to pay our taxes right now. It’s not a big deal. Okay?
But TJ and I had a conversation where we, you know, back in, I guess it would have been somewhere in 2021, about the middle of the year, we’re like, “You know what? We should take some of this money and we should set it aside for taxes when it’s time.”
We didn’t do it. I wish we would have. Because it would have made things easier for us down the road and also as the price of crypto is going down tremendously in the bear market, we could have had that money sitting there retaining its value.
And so we could have not only paid taxes, but we could have actually taken that money and bought more crypto near the bottom and actually paid taxes and got extra crypto for it. So the point is, is that it would’ve been really easy for us to do that
And we just didn’t do it. And we learned a very valuable lesson about that. So we learned a lot of valuable lessons about taxes in the last couple of years. I can tell you that much. But the fact is, is that this is my word of advice to MicroStrategy.
I would go ahead in 2025, take all the profit to pay off your debts for 2025 and 2028, and beyond if you have some, because when Bitcoin is rolling and it’s at its peak, you want to take advantage of that as much as possible.
So, and that, of course, goes to everybody watching at home as well. I mean, you guys should be taking profits at the top. Don’t ride everything down to the bottom. It’s not really what you want to do. So big news today. MicroStrategy says they’re going to have to sell their Bitcoin,
But it’s because they have to because they don’t have any other income source. So it’s not a terribly bad story, but it just goes to show you guys you can’t sit on your Bitcoin forever if you have no income. Remember that. That’s all I got. Be blessed. BitBoy out.
Uh-oh. Who’s that? Momma’s home.
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