Bitcoin Crash Vs MicroStrategy CEO Michael Saylor’s HODL Strategy
- MicroStrategy transferred 2089 BTC to anonymous wallets on Monday.
- MicroStrategy shares have been down 32.95% and Bitcoin by 11.18% in the last 24h.
The extreme volatility in the crypto market accelerated the Bitcoin market-sell off. The dominant crypto has breached below the $21,000 level. Due to this, traders continue to suffer several million losses in liquidations. MicroStrategy, an active firm that invested in Bitcoin, has entered the red zone due to Bitcoin-linked liquidations. This recent Bitcoin collapse will more likely cause MicroStrategy to lose $1 billion USD.
Adding to this on Monday, nearly 2089 BTC were transferred from the MicroStrategy wallet to anonymous wallets. This action seems to contradict MicroStrategy CEO Michael Saylor’s HODL strategy.
Is Its Bitcoin Investment Strategy Failing?
MicroStrategy, a business intelligence software firm, linked its company’s fortunes majorly to Bitcoin. The company began acquiring Bitcoin in August 2020 and continued to actively invest in the crypto. Moreover, the firm borrowed funds from entities to accelerate its Bitcoin acquisitions. The firm was keen on turning its cash reserves into Bitcoin.
MicroStrategy availed a $205 million loan from Silvergate Bank, a fintech service provider in the crypto space, to purchase 4,167 BTC. The company chose to collateralize Bitcoin for these loans. At the end of Q1 2022, MicroStrategy held 129,218 bitcoin in its reserves.
Investors and shareholders began warning Michael Saylor about margin calls. The bitcoin evangelist confidently cast his opinion that the firm would meet this fate only if Bitcoin touches down $3,562.
In #Bitcoin We Trust.
— Michael Saylor (@saylor) June 13, 2022
Amid the extreme market dips, Michael Saylor continues to be determined to latch onto the firm’s Bitcoin holdings. Andrew Kang, Chief Financial Officer of MicroStrategy, confirmed that they don’t intend to sell their Bitcoin holdings during these extreme dips.
Read more: https://thenewscrypto.com/bitcoin-crash-vs-microstrategy-ceo-michael-saylors-hodl-strategy/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
