The recent Bitcoin (BTC) purchase by business intelligence company MicroStrategy has sparked a lot of concerns amongst crypto community members.
The Consistent MicroStrategy Buyups
The world’s largest a Wall Street BTC holder bought another round of Bitcoin worth $340 million today. Each unit of the token was acquired at an average price of $28,136 and MicroStrategy bagged 12,333 units. This brings the company’s entire BTC holding to 152,333 Bitcoin.
MicroStrategy’s BTC holding was acquired for $4.52 billion at an average price of $29,688 per unit. Notably, ever since MicroStrategy got exposed to the leading cryptocurrency by market capitalization in 2022, the company has maintained this trend of buying and HODLing the coin. Also, MicroStrategy Co-founder Michael Saylor has been a strong advocate of BTC and its capabilities.
What Will Happen to MicroStrategy’s BTC Holding?
However, many are beginning to speculate on MicroStrategy’s plan for acquiring and HODLing BTC.
Some crypto community members are wondering when Saylor will begin to sell off its holdings, that is if he plans to sell them at all. Others are worried that Saylor may get to control a significant percentage of the network because of his large holding.
Will Clemente, the co-founder of digital asset research firm Reflexivity Research attempted to explain that this may not be the case.
Firstly, he established the fact that Saylor does not seem to be voluntarily selling Bitcoin any time soon. Also, Clemente clarified that no individual controls the network than anyone else no matter the amount of BTC they own, and as such, the threat of absolute control is not justified.
Lastly, he opined that there may be larger positions from nation-states in the future. Pro-XRP lawyer and founder of Crypto Law John Deaton agreed with the first explanation offered by Clemente about Saylor not selling MicroStrategy’s BTC holding soon.
At the same time, he posed a question wondering “At what point, if any, does a fiduciary duty to shareholders require selling some Bitcoin (thus protecting the original $4.5B expenditure of capital to acquire BTC)?”
This question from Deaton received several explanation from crypto Twitter and also gave rise to many other questions. Senior software engineer at Ripple Niel Hartner mentioned that “At some point to pay off the loans they will have to sell BTC or issue equity to raise cash.”
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