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Did Michael Saylor One-Time Bought Bitcoin Bottom?

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Business intelligence firm MicroStrategy shows no signs of backing down on its bitcoin gambit. At the time Sam Bankman Fried exposure to fraudMicroStrategy was attracting more bitcoins (BTC) – this time, the company bought as close to the bottom as possible. While bitcoin can always go lower, seeing MicroStrategy buy around $17k is refreshing. Interestingly, MicroStrategy also sold off some BTC earlier this month – but not for the reason you’d think (more on that below).

Crypto Biz’s latest newsletter for 2022 discusses MicroStrategy’s Bitcoin buyout, Fidelity Investments’ foray into the metaverse, Changpeng Zhao’s response to the haters and the collective problems of Bitcoin miners.

MicroStrategy adds to Bitcoin’s share despite huge losses

business intelligence company MicroStrategy has collected 2,395 BTC At an average price of $17,181 between Nov 1st and Dec 21st (I know the bottom was under $16,000 but that’s pretty close for MicroStrategy). After that I sold 704 BTC at a loss to make up for the previous capital gain. A few days later, the company bought an additional 810 BTC, bringing its total holdings to 132,500 BTC. Lead Bitcoin Evangelist at MicroStrategy Michael Saylor has been adamant that his company plans to convert its fiat holdings into BTC in the foreseeable future and will continue to hold the leading digital asset indefinitely. MicroStrategy’s Bitcoin has a current value of $2.2 billion against a total cost basis of more than $4 billion, according to Bitcoin Bonds. This is very brutal.

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Public bitcoin mining companies have a collective debt of $4 billion

Last week, we raised awareness about the impact of cryptocurrency infections on Bitcoin miners. Mining companies are in worse shape than first thought. General miners have Accumulated more than 4 billion dollars In the collective debt, which is difficult to bear in view of the scale of the current bear market. Running debt to fuel business operations and expand capacity sounded like a good idea during the bull market of 2021. Now, those debt levels are very risky. Case in point: Core Scientific, the largest debtor among miners, I recently filed for Chapter 11 bankruptcy. Check out how much money other major mining companies owe.

CZ addresses the reasons behind Binance’s recent FUD

Cryptocurrency exchange Binance has been in the news for all the wrong reasons. its opaque management structure, Suspicious backup evidence report and allegations of “fraudulent concealment” in France Contribute to a coordinated FUD campaign against the company. (Or is FUD a response to Binance’s fundamental issues?) Changpeng Zhao, aka CZ, He issued a series of tweets It explains why people spread fear, uncertainty, and doubt about sharing it. In Czechoslovakia’s view, the FUD was spread by external factors, including paid shillings intended to make its drainage look bad. I’m not sure about buying it, but you can read the reasons why below.

Fidelity plans to market NFT and financial services into the metaverse

While the crypto investment activity may be Not found among large organizationsOne of the main actors is expanding its exposure to the sector. Fidelity Investments, which has long been bullish on Bitcoin and digital assets, recently Filed trademark applications For many Web3 and nonfungible token products in the metaverse. Fidelity said it is exploring a range of investment services within virtual worlds, including pension funds, mutual funds and financial planning services.

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Before You Go: What Does 2023 Have in Store for Cryptocurrency?

By most measures, 2022 has been a bad year for cryptocurrency. 2023 couldn’t get any worse…or could it? In this week Market report, I sat down with fellow analysts Marcel Bechman and Joe Hall to discuss the coming year in Bitcoin and digital assets. While I remain optimistic about the future of Bitcoin, 2023 may see a return to basics after reviewing the failures and bankruptcies of the past year. You can watch the full replay below.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto delivered straight to your inbox every Thursday.