Community Ponders on MicroStrategy’s Exit Plans for Bitcoin

Godfrey Benjamin
June 29, 2023
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Bitcoin Whale Alert: MicroStrategy Moves Massive 1,652 BTC to New Wallet!

The recent Bitcoin (BTC) purchase by business intelligence company MicroStrategy has sparked a lot of concerns amongst crypto community members. 

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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.

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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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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.