{"id":4508,"date":"2020-09-16T11:58:57","date_gmt":"2020-09-16T11:58:57","guid":{"rendered":"https:\/\/www.newsbtc.com\/?p=438595"},"modified":"2020-09-16T11:58:57","modified_gmt":"2020-09-16T11:58:57","slug":"grayscale-ceo-quips-about-bitcoin-buying-race-with-microstrategy","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/grayscale-ceo-quips-about-bitcoin-buying-race-with-microstrategy\/","title":{"rendered":"Grayscale CEO Quips About Bitcoin Buying Race With MicroStrategy"},"content":{"rendered":"

Michael Saylor<\/a>, the Founder of MicroStrategy<\/a>, said, so far, he has spent a total of $425 million buying Bitcoin.<\/p>\n

In a recent tweet, Saylor mentioned his firm had just purchased approximately 17k BTC. Including previous the purchase of 21k tokens, the firm now holds around 38k BTC in total.<\/p>\n

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“On September 14, 2020, MicroStrategy completed its acquisition of 16,796 additional bitcoins at an aggregate purchase price of $175 million. To date, we have purchased a total of 38,250 bitcoins at an aggregate purchase price of $425 million, inclusive of fees and expenses.<\/span>“<\/p>\n<\/blockquote>\n

As a business intelligence software firm, MicroStrategy is not normally associated with cryptocurrency. But last month<\/a>, the company revealed its revised treasury strategy to weather the uncertain economic conditions.<\/p>\n

In a press statement<\/a>, the company spoke about the downfalls of holding cash during these times. To which, they believe holding BTC, over cash, represents a better bet for the company as a going concern.<\/p>\n

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“This investment reflects our belief that Bitcoin, as the world\u2019s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash… MicroStrategy<\/span> has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.\u201d<\/p>\n<\/blockquote>\n

The news brought a boost to cryptocurrency advocates, who have long suffered accusations that Bitcoin is a Ponzi scheme.<\/p>\n

As a NASDAQ listed firm, MicroStrategy’s foray does add an air of legitimacy to Bitcoin. However, some observers have criticized the move, especially considering Bitcoin’s failure to close above the critical $12k level.<\/p>\n

\"Bitcoin<\/p>\n

Bitcoin daily chart with volume. (Source: tradingview.com<\/a>)<\/pre>\n
Bitcoin as a Hedge? Not Every Shareholder is Convinced<\/h2>\n
As much as this is a boost for Bitcoin in terms of legitimacy, some have suggested MicroStrategy’s approach of going BTC heavy is the wrong thing to do.<\/p>\n
One Twitter user<\/a> pointed out that this leaves the company seriously cash deficient. What’s more, with on-going expenses, that require paying in dollars, it was a move that made little sense.<\/p>\n
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So that ~$420M you reported in cash balance is now in Bitcoins.<\/p>\n
WTF? <\/p>\n
How are you gonna pay $80M-$100M (USD) in quarterly operating expenses (leases, wages for your 2,528 employees)!??!<\/p>\n
You're going to convert Bitcoin to USD each time aren't you?! pic.twitter.com\/X498dATTEf<\/a><\/p>\n
— Uncle Jack (@UncleJack123) September 15, 2020<\/a><\/p>\n<\/blockquote>\n