Bitcoin Whale: After Crypto Descent: MicroStrategy Stumbles | news

Bitcoin whale stays excited and sees BTC at $ 1 million
121 percent of the market value invested in Bitcoin
Saylor calls for regulation of opaque cryptocurrencies as they weight bitcoin

Hardly anyone has been as enthusiastic about Bitcoin in recent years as MicroStrategy CEO Michael Saylor.

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Bitcoin million loans

Most recently, Michael Saylor has taken out a million loan for Bitcoin through the bank Silvergate Capital, which is well known in the crypto industry, and has once again made the cyber motto part of its corporate strategy.

With the loan, Saylor wanted to further expand its leading position among Bitcoin investors and make it a “productive security”. According to Bitcoin Treasuries, MicroStrategy holds 129,218 Bitcoin worth approximately $ 2.68 billion (as of 28/06/2022). This corresponds to 121 percent of the company’s market capitalization. Although Saylor is apparently not deterred by his strategy – “Bitcoin will survive us all,” he recently told CNN – he is under increasing pressure.

At the time of the massive purchase of Bitcoin in March this year, the value of Bitcoin assets was around 5.8 billion US dollars – the losses are currently at 2.12 billion US dollars, a minus of almost 54 percent. MicroStrategy shares have also lost about 64 percent since the beginning of the year and are now trading at $ 196.73 (closing price June 27, 2022). A chart from Bloomberg also shows a clear correlation between the price development of MicroStrategy shares and Bitcoin: MicroStrategy shares had experienced a steep increase along with Bitcoin, and the company’s market value reached unprecedented heights, almost 100 billion USD with annual sales of only $ 500 million. When Bitcoin then came under pressure and lost massively, so did the MicroStrategy stock.

NZZ sees clear doubts on the part of investors about Saylor’s Bitcoin bets and writes that some investors have even demanded additional collateral, “because the cryptocurrency is currently no longer a state – such as the creditors of another loan secured with Bitcoin in the amount of 200 million “dollars”.

The investment in Bitcoin and the demand for regulation

In an interview with CNBC in early June, Michael Saylor said that despite all the criticism that Bitcoin has won and that critics have long been “discredited”, he continues to be optimistic about the development of Bitcoin, and that everyone free money from the cash flow will go into the cyber currency investment instead of trying to time the market. “If the critics and skeptics are wrong – and it’s pretty clear by now that they’m wrong – that bitcoin does not go to zero at all, then bitcoin goes to a million,” Saylor sums up his thoughts.

In an interview with Northman Trader, Saylor is sure that Bitcoin is an “forever asset” that you would like to pass on to your heirs as 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 should not gather all cryptocurrencies in one pot, and you can not compare “the mass of opaque, unregistered assets 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 investment in the cyber currency, Michael Saylor has linked the success of MicroStrategy to Bitcoin. In times of cryptocurrency, this gave him ridicule of his critics.

Well-known bitcoin critic and self-proclaimed gold fan Peter Schiff linked his negative forecast for bitcoin to a “double-top” chart formation in January, predicting that bitcoin could fall to $ 10,000. In the past, Schiff has often erred in his bearish statements about Bitcoin, now he warns Michael Saylor on Twitter to quickly sell all Bitcoin while he still can before “the music is over”.

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