Microstrategy bought more bitcoin during a market downturn. This announcement came after Gary Gensler, chairman of U.S. Securities and Exchange Commission (SEC), clarified that bitcoin was a commodity.
Microstrategy Purchases the Dip
Microstrategy is a Nasdaq-listed company that sells software. In a Wednesday filing with the U.S. Securities and Exchange Commission (SEC), the company declared that during the period between May 3 and June 28, it “acquired approximately 480 bitcoins for approximately $10.0 million in cash, at an average price of approximately $20,817 per bitcoin, inclusive of fees and expenses.” The filing adds:
Microstrategy had approximately 129 699 bitcoins at its disposal as of June 28, 2022.
Overall, the company’s BTC “were acquired at an aggregate purchase price of approximately $3.98 billion and an average purchase price of approximately $30,664 per bitcoin, inclusive of fees and expenses,” the filing further details.
Microstrategy has dispelled the myth that it could be faced with a margin-call on a Silvergate Bank-backed bitcoin loan.
Michael Saylor, the CEO of the Nasdaq-listed software company, said in May: “We are in it for the long term … Our strategy is to buy bitcoin and hold the bitcoin, so there’s no price target. I expect we’ll be buying bitcoin at the local top forever.” He added: “I expect bitcoin is going to go into the millions. So, we’re very patient. We think it’s the future of money.”
Microstrategy’s latest bitcoin purchase announcement followed a statement by SEC Chairman Gary Gensler earlier this week clarifying that bitcoin is a commodity. Gensler commented on BTC as a commodity while the company was about to acquire the new batch.
Saylor tweeted in response to Gensler’s clarification:
Bitcoin is an essential asset for any Treasury reserve asset.
He continued: “This allows politicians, agencies, governments, and institutions to support bitcoin as a technology and digital asset to grow the economy and extend property rights and freedom to all.”
The Commodity Futures Trading Commission is responsible for Bitcoin because it’s a commodity. Rostin Behnam (chair of the derivatives watchdog), recently stated that bitcoin andether were commodities.
In crypto regulation, the SEC and CFTC have been working together. Last week, Gensler proposed having “one rule book” for the regulation of crypto trading. Last month, the chairman of SEC warned that many crypto tokens would fail.
Microstrategy’s purchase of the bitcoin dip: What are your thoughts? Comment below to let us know your thoughts.
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