Critics have slammed MicroStrategy’s decision to keep stacking Bitcoins in the face of negative crypto emotions. However, the creator of the world’s biggest cryptocurrency exchange endorsed the transaction.
Keep stacking sats, Saylor.
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
MicroStrategy CEO Michael Saylor announced on Twitter the company’s acquisition of more Bitcoin. The company increased its holdings by 480 bitcoins for $10 million.
Each BTC was acquired at an average price of $20,817, bringing MicroStrategy’s total Bitcoin holdings to 129,699 BTC. Over the previous two years, MicroStrategy has pursued a strategy of buying the dip, with the firm’s total Bitcoin holding of $3.98 billion.
On June 29, the company sent a Form 8-K filing to the US Securities and Exchange Commission. With this recent purchase, Saylor’s business now owns one of every 161 Bitcoins that will ever exist.
The purchase raised eyebrows since it occurred when the crypto market shivered in the cold of a bear market. A cross-section of cryptocurrency users mocked the company’s choice to acquire additional Bitcoin when it was in financial trouble.
“If you’re having a bad day in the markets, at least you don’t have Michael Saylor’s portfolio,” Justin Waite of the Vox Podcast said.
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CZ supports the move.
While the detractors booed, Binance CEO Changpeng Zhao came to Michael Saylor’s rescue. He said that, in the end, the choice to purchase additional Bitcoins would benefit the firm in the long term.
“Many may laugh at him now, but Saylor will get the last laugh in time,” wrote Zhao. “Bookmark this tweet.”
After the sharp decline in Bitcoin values, the business was said to have received a margin call for $21,000. In May, the company’s Chief Financial Officer said, “Bitcoin has to be reduced in half or about $21,000 before we’d have a margin call. It is unknown if the corporation replied to the call, but observers believe that the latest acquisition demonstrates a strong will to continue with Bitcoin until the end.
MicroStrategy borrowed $205 million from Silvergate Bank in March to buy Bitcoin, and the company’s Bitcoin business is has now losing lost more than $1.5 billion.