Bitcoin whale: After cryptocurrency exit: MicroStrategy is weakening | News

The Bitcoin whale remains enthusiastic and sees BTC at 1 million
121 percent of the market capitalization invested in Bitcoin
Saylor calls for regulation of opaque crypto assets as they weigh on bitcoin

In recent years, few have been as enthusiastic about Bitcoin as MicroStrategy boss Michael Saylor.

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A loan in millions of bitcoins

Recently, Michael Saylor took a million euros on Bitcoin through Silvergate Capital, which is well known in the crypto industry, and has once again made cybermotto part of his corporate strategy.

With the loan, Saylor wanted to further develop his leading position among Bitcoin investors and turn it into a “productive collateral.” According to Bitcoin Treasuries, MicroStrategy owns 129,218 bitcoins worth around $ 2.68 billion (as of 06/28/2022). This is equivalent to 121 percent of the company’s market capitalization. While Saylor is clearly not disheartened by his strategy – “Bitcoin outlasts us all,” CNN recently told CNN – he is nevertheless under increasing pressure.

At the time of the massive Bitcoin purchase in March this year, Bitcoin’s asset value was around $ 5.8 billion – losses now amount to $ 2.12 billion, minus almost 54 percent. MicroStrategy stock also lost approximately 64 percent from the start of the year and is now trading at $ 196.73 (closing June 27, 2022). The Bloomberg chart also shows a clear correlation between the development of MicroStrategy and Bitcoin stock prices: MicroStrategy shares saw a sharp rise with Bitcoin, and the company’s market value hit unprecedented gains of nearly $ 100 billion with an annual sale of only $ 500 million. Then, when Bitcoin came under pressure and lost massively, so did MicroStrategy’s shares.

The NZZ sees clear investor doubts about the Bitcoin Saylor plant and writes that some investors have even called for further security “because the cryptocurrency is no longer a state – as are the creditors of another $ 200 million Bitcoin-backed loan.”

Bet on Bitcoin and the need for regulation

In an interview with CNBC in early June, Michael Saylor said that despite all the criticism, Bitcoin has won and that the critics have long since been “discredited”, he continues to be optimistic about Bitcoin’s development and that all free money from cash flow will go to investments in cyber currency, rather than trying timing the market. “If the critics and skeptics are wrong – and it’s already quite clear that they are wrong – that bitcoin doesn’t drop to zero at all, bitcoin goes to a million,” concludes Saylor.

In an interview with Northman Trader, Saylor is sure that Bitcoin is an “eternal asset” that you want to pass on to your heirs like a family farm. He is not interested in short-term investments.

However, he sees a problem with unregulated, risky products in the crypto industry putting pressure on Bitcoin’s price because they are backed by ‘hard digital’ currency. You shouldn’t put all your cryptocurrencies in one pool, and you can’t compare the “mass of opaque, unrecorded assets that are traded in an opaque manner” to Bitcoin. In this interview, Saylor called on authorities to take action against these unregulated products.

Critics mocking

With his massive investments in cyber currency, Michael Saylor combined the success of MicroStrategy with Bitcoin. In times of the cryptocurrency crash, it brought him mockery from critics.

Well-known bitcoin critic and self-confessed gold lover Peter Schiff linked his negative bitcoin outlook to the January “double peak” chart, predicting bitcoin could drop to $ 10,000. In the past, Schiff has often confused his bearish statements about Bitcoin, now he is warning Michael Saylor on Twitter to sell all Bitcoins quickly while he can, before the “music is over”.

Editors of finanzen.net

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