The company recently spent an additional $200 million to acquire Bitcoin, sending its total holdings to 130,000 BTC.
MicroStrategy Incorporated (NASDAQ: MSTR) is one of the corporate believers in Bitcoin that consistently acquires the digital asset regardless of its market volatility. Recently, it was speculated that the company had moved a large volume of its Bitcoin holding, creating fear and panic among investors. A Twitter user identified as “Ozz, CEO of Altseason”, issued a strong confirmation to this effect.
“I just realized that Microstrategy has been selling bitcoin without telling no one. Michael Saylor said he would never do so, but yesterday he sold more than 1,500 bitcoins,” he said.
According to this user, MicroStrategy has been transferring Bitcoins to its secondary address to sell them on Coinbase Inc and OKX (previously known as OKEx). The user went ahead to paste two different Bitcoin addresses, claiming one is the main custodial address and the other is the secondary custodial address of Microstrategy. However, Ozz was immediately called out by several users stating that his information is completely false. According to researchers, the third-largest Bitcoin address is not even owned by MicroStrategy, but more likely by a crypto exchange platform.
Microstrategy Dismisses the Rumors on Its Bitcoin Sales
Microstrategy CEO Michael Saylor has reacted to these rumors with strong dismissal. According to him, this information is practically false as the company is demanded by the US Securities and Exchange Commission (SEC) to ensure that all material changes to corporate strategy are disclosed to stakeholders through SEC filings. He further explained that material holdings in this context include the acquisition and the holding of Bitcoin as well as subjecting the crypto holdings to change. The Sec filings are, therefore, available to all for public consumption. The company has in multiple reports disclosed that it has no plan to give up on Bitcoin as it believes that its widespread adoption is imminent.
“Our strategy with Bitcoin has been to buy and hold, so to the extent, we have excess cash flows, or we find other ways to raise money, we continue to put it into Bitcoin,” said Chief Financial Officer Phong Le.
The company recently spent an additional $200 million to acquire Bitcoin, sending its total holdings to 130,000 BTC.
Saylor believes that Bitcoin is a critical hedge against inflation and has for the past couple of years outperformed traditional products like gold. Bitcoin also perfectly addresses the long-standing inconveniences of the traditional financial system.
In December last year, he predicted that Bitcoin could hit $6 million. In February this year, he re-emphasized his position on the adoption growth of the digital asset.
“I see evidence of a lot more institutional adoption, greater adoption amongst macro and other hedge funds,” he said.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
