Bitcoin or not Bitcoin? That is the question!
Michael Saylor, CEO of MicroStrategy, announced on September 22 that the firm may well resell all of its Bitcoins at any time. This statement raised a lot of questions, especially since the company had justified its Bitcoin Compass bet in a rather ideological way.
A massive and recent investment
Michael Saylor had a very strong opinion about Bitcoin. In 2013, for example, he announced the death of Bitcoin by comparing it to a casino game based on luck.
However, this was changed on August 11, 2020. Indeed, MicroStrategy then announced the purchase of $250 million in Bitcoin, shaking the cryptosphere.
Finally, on September 16, the company continued on this path, this time buying 38,000 BTCs, bringing its total prize money to around $425 million. This acquisition of bitcoins by an institution listed on the NAQSDAQ had been interpreted as a positive signal for investors.
Michael Saylor justified the purchase by explaining that virtual currency was primarily a non-sovereign reserve of value. In a context of economic instability, safe havens are coveted, and Bitcoin is king.
„We are quite convinced that Bitcoin is less risky than holding cash and less risky than holding gold. „Michael Saylor
Indeed, gold is always mined, especially in times of crisis. This overexploitation reduces future returns, making the asset less attractive.
Reversal of situation
According to Saylor, Bitcoin’s volatility is not really a reason to sell. Nevertheless, the man explains that he won’t hesitate to sell if the returns on altcoin skyrocket.
Selling such a large quantity of bitcoin could easily cause a significant drop in the price, as has happened in the past. Although MicroStrategy acquired the Bitcoins in 78,338 separate transactions, the CEO says that reselling the Bitcoins could be much easier. Indeed, while he explains that his company is now much more comfortable keeping the significant amount in Bitcoins than in dollars, he told Bloomberg that he could just as easily „liquidate $200 million in Bitcoins“ in a snap of the fingers, if necessary.
Saylor also indicated that his top 10 shareholders were very supportive of investing more in Bitcoin. This rather contradictory information suggests that the company is not looking to emancipate itself from this crypto quickly.
By 2020, many financial institutions have taken their gamble and started to take Bitcoin seriously. A case to be followed, therefore, depending on the sudden changes in the market, without doubt