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
Hardly anyone has been as enthusiastic about Bitcoin in recent years as MicroStrategy boss Michael Saylor.
advertising
Trade Bitcoin and other cryptos with leverage (long and short)
Bitcoin and other cryptocurrencies have recently corrected significantly. Trade cryptos such as Bitcoin or Ethereum with leverage at Germany’s No. 1 CFD provider and participate in rising and falling prices.
Bitcoin million loan
Most recently, Michael Saylor took out a million-euro loan for Bitcoin through the bank Silvergate Capital, which is well-known in the crypto industry, and once again made the cyber motto part of his corporate strategy.
With the loan, Saylor wanted to further expand his leading position among Bitcoin investors and turn it into a “productive security”. According to Bitcoin Treasuries, MicroStrategy holds 129,218 Bitcoin worth approximately $2.68 billion (as of 06/28/2022). This corresponds to 121 percent of the company’s market capitalization. Although Saylor is seemingly undeterred by his strategy – “Bitcoin will outlive us all,” he recently told CNN – he is, however, coming under increasing pressure.
At the time of the massive purchase of bitcoin in March this year, the value of the bitcoin assets was around 5.8 billion US dollars – the losses are currently estimated at 2.12 billion US dollars, a minus of almost 54 Percent. MicroStrategy shares have also lost around 64 percent since the beginning of the year and are now trading at $196.73 (closing price June 27, 2022). A chart by Bloomberg also shows a clear correlation between the price development of MicroStrategy shares and Bitcoin: MicroStrategy shares had experienced a steep rise together with Bitcoin, and the company’s market value reached unprecedented heights, almost US$ 100 billion -dollars with annual sales of just $500 million. Then, when Bitcoin came under pressure and lost massively, so did MicroStrategy stock.
The NZZ sees clear doubts on the part of investors about Saylor’s Bitcoin bet and writes that some investors have even demanded further collateral “because the cryptocurrency is currently no longer a state – such as the creditors of another loan secured with Bitcoin in amount of 200 million dollars”.
The bet on Bitcoin and the demand for regulation
In an interview on CNBC in early June, Michael Saylor said that despite all the criticism, Bitcoin has prevailed and that the critics have long since been “discredited”, he continues to be optimistic about the development of Bitcoin and that all free money from the cash flow will go into the cyber currency invest instead of trying to time the market. “If the critics and skeptics are wrong – and it’s pretty clear by now that they’re wrong – that bitcoin doesn’t go to zero at all, then bitcoin goes to a million,” Saylor summarizes his thoughts.
In an interview with Northman Trader, Saylor is certain that Bitcoin is a “forever 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 that are putting pressure on the Bitcoin price because they are backed by the “hard, digital” currency. You shouldn’t lump all cryptocurrencies into one pot and you can’t compare the “mass of opaque, unregistered assets that are traded in a non-transparent way” with Bitcoin. In this interview, Saylor called on the authorities to take action against these unregulated products.
The mockery of the critics
With his massive investments in the cyber currency, Michael Saylor has linked the success of MicroStrategy to Bitcoin. In times of the crypto crash, this earned him the ridicule of his critics.
That’s really going to cost you. Trust has been broken. You can try praying, but that won’t work either. The best thing you can do now is sell while you still can. Whoever gets stuck with the largest stack of #Bitcoin when the music stops is the biggest loser.
– Peter Schiff (@PeterSchiff) June 14, 2022
Noted bitcoin critic and self-confessed gold fan Peter Schiff tied his negative forecast for bitcoin to “double-top” chart formation in January, predicting that bitcoin could fall to $10,000. In the past, Schiff has often been wrong with his bearish statements on Bitcoin, now he warns Michael Saylor on Twitter to quickly sell all Bitcoin while he still can, before the “music is over”.
Editorial office finanzen.net
Leverage must be between 2 and 20
No data
Image sources: JHVEPhoto / Shutterstock.com, Bitcap