• Despite the crypto cold, MicroStrategy’s CEO will not sell his $5 billion BTC stockpile

  • Despite a 40% decline in value, MicroStrategy’s Michael Saylor has no plans to sell from his firm’s $5 billion Bitcoin chest.

    Despite a 40% drop in the value of Bitcoin (BTC), MicroStrategy’s Michael Saylor has no plans to sell his company’s $5 billion stockpile.

    Even if BTC has a prolonged down market, Saylor said that he is a “Bitcoin bull” and has no plans to change MicroStrategy’s multibillion-dollar BTC acquisition strategy. He was adamantly opposed to cashing out BTC:

    “Never. No. We are not merchants. Isn’t all we’re doing is buying and holding Bitcoin? That is our plan.”

    In August 2020, MicroStrategy became the first publicly traded firm in the United States to acquire and keep Bitcoin on its balance sheet. Since then, the company has gathered over 124,391 BTC, which is worth approximately $5.2 billion at current market values.

    Because cryptocurrency accounts for a sizable component of the company’s balance sheet, its shares have become a way to gain exposure to the “digital gold.” MicroStrategy’s shares jumped 900 percent after announcing its BTC venture; however, its collateral has subsequently gone into a tailspin after being exposed to extreme buying activities supported in part by borrowed cash.

    MicroStrategy has steadily increased its Bitcoin stake since August 2020, fulfilling its commitment to buy even more of the major digital currency. MicroStrategy purchased 1,914 BTC for $94.2 million between December 9 and December 29 of last year, raising its total to 124,391 BTC.

    Despite the recent market downturn, Saylor believes BTC is one of the finest inflation hedges and options for company buyback events. He downplayed any concerns about the cryptocurrency’s drop from an all-time high of $69,000 in November to less than $40,000 this month, claiming that because inflation is so high, the company’s assets provide “great comfort.”

    Saylor, who previously referred to currency as a “melting ice cube,” believes that at present pricing, more Wall Street names will buy BTC, calling it as a “excellent entry opportunity for institutional investors.”

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