Tag: Michael Saylor

Fidelity Reiterates Bitcoin’s Unique Value as a Primary Investment Choice

by Blockchain News

Identifying assets with enduring value remains a pivotal concern for investors. Recently, Fidelity Digital Assets shed light on the distinct stature Bitcoin holds among digital assets, endorsing it as a primary consideration for investors. This narrative was further propagated by MicroStrategy’s Founder and Chairman, Michael Saylor, who shared Fidelity’s insights on Twitter on October 10, 2023, garnering over 300K views.

Bitcoin’s Distinguished Attributes Unveiled

A research study issued on October 4, 2023, by Chris Kuiper and Jack Neureuter under the banner of Fidelity Digital Assets, revisited the intrinsic characteristics that set Bitcoin apart from other digital assets. Titled “Bitcoin First Revisited: Why investors need to consider bitcoin separately from other digital assets,” the study builds on an initial analysis from January 2022. Over the span of a year and a half, Bitcoin has not only sustained its unique attributes but has witnessed an upward trajectory in adoption and market share, even as other digital assets encountered headwinds.

Positioning Bitcoin as a Monetary Good

The crux of the study hinged on recognizing Bitcoin as a monetary good, distinctly different from other digital assets due to its secure, decentralized nature, and sound digital money qualities. The authors assert that the prospect of any digital asset surpassing Bitcoin in these aspects is slim, as any such “improvement” would entail trade-offs. They propose that Bitcoin should be the introductory route for traditional allocators looking to delve into the digital asset space, emphasizing the need for separate evaluation frameworks for Bitcoin and other digital assets.

Fidelity’s Expanding Footprint in Bitcoin and ETF

Fidelity has been extending its stride into the Bitcoin realm through ETFs and other products, embodying its acknowledgment of Bitcoin’s unique value proposition. As of October 2023, Fidelity Investments offers a compact selection of 58 ETFs in the U.S., some of which provide exposure to the digital asset market, including Bitcoin. These offerings are a testament to Fidelity’s growing commitment to providing diversified investment avenues in the digital asset spectrum. The total assets under Fidelity’s ETFs amount to $36.24 billion as of October 7, 2023, showcasing the substantial footprint Fidelity has in the ETF domain.

Unpacking the Implications for Investors

Fidelity’s publication elucidates that the thriving nature of Bitcoin doesn’t spell doom for other digital assets; the broader digital asset ecosystem can cater to diverse needs and problem-solving avenues that Bitcoin doesn’t address. Yet, when it comes to serving as a reliable store of value in an increasingly digital world, Bitcoin’s position remains unrivaled. The insights furnished by Fidelity Digital Assets are poised to equip investors with a nuanced perspective, underlining the imperative of distinguishing between Bitcoin and other digital assets when orchestrating investment strategies.

The study thus serves as a cornerstone for shaping informed investment decisions in the digital asset spectrum, reinforcing the unparalleled value proposition Bitcoin brings to the table.

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MicroStrategy’s Debt Dilemma: A Balancing Act Between Bonds and Bitcoin

by Blockchain News

The behavior of MicroStrategy in borrowing money to purchase Bitcoin has stirred quite a controversy. Adam Cochran, a partner at CEHV and a known figure in the crypto space, recently dissected the precarious financial position of MicroStrategy, a company headed by Michael Saylor and known for its large Bitcoin holdings. Cochran outlined the company’s obligations regarding its 2025 and 2028 convertible notes in a series of tweets on October 9, 2023. The notes have pull forward provisions on liquidity, allowing them to be moved to 2025. With a forward of $120 million in revenue against costs of approximately $188 million, MicroStrategy still faces $36 million in coupon payments on its debt.

MicroStrategy’s Bitcoin Accumulation

MicroStrategy has been aggressively accumulating Bitcoin, under the stewardship of its CEO, Michael Saylor. As of September 24, 2023, the firm holds a whopping 158,245 bitcoins, acquired at an average price of $29,582 per bitcoin, amounting to a total investment of approximately $4.68 billion​1​. The acquisition spree commenced on August 11, 2020, and has seen notable purchases including 29,646 bitcoins for $650 million on December 21, 2020, and 19,452 bitcoins for $1.026 billion on February 24, 2021. In 2023 alone, MicroStrategy acquired 17,778 bitcoins for a total of $494.3 million, as per the purchase records​1​.

Convertible Note Conundrum

Cochran highlighted the potential fallout if MicroStrategy fails to pay the convertible note for 2025, which would convert at a $725 million value against the company equity, causing around 15% dilution for holders. The alternative could be refinancing, but the last issuance had a 6.25% yield before the hiking cycle, and Cochran estimates refinancing could drive yields to a staggering 9%-11%.

The Bitcoin Balancing Act

He further noted that Saylor has a few options to manage this debt. One is leveraging the company’s Bitcoin holdings before the year end, which would exclude it from liquidity calculations and bring $2.8 billion in conversions. Alternatively, they could let the 2025 bonds convert for a 15% dilution, refinance to double-digit debt yields, or sell a portion of their Bitcoin to cover the debt.

Implications on Bitcoin

Selling Bitcoin, however, could erode confidence and lead to more impairment loss, especially if Bitcoin’s price dips below $20k. Cochran suggests that such a move could potentially lead to MicroStrategy’s downfall, which he believes might be bullish for the markets. This is because a concentration of assets, particularly in a publicly traded entity, can mute upsides, and a short-term wipe could usher in long-term gains.

In a follow-up query by David Miranda, Cochran noted that although corporate debt refinancing usually starts a year in advance, Saylor’s outlier status might push negotiations to the last minute, making the year end a crucial period for MicroStrategy’s financial strategies heading into 2024.

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MicroStrategy Acquires Additional 5,445 Bitcoins, Total Holdings Reach 158,245 BTC

by Blockchain News

Key Takeaways

MicroStrategy purchases 5,445 more Bitcoins for approximately $147.3 million.

The company now holds a total of 158,245 Bitcoins, acquired at an average price of $29,582 per Bitcoin.

The acquisition comes amid a period of relative price stability for Bitcoin, which is currently trading around $26,000.

Strategic Investment

MicroStrategy, a leading business intelligence firm, has further solidified its position as a significant Bitcoin investor by acquiring an additional 5,445 BTC. The announcement was made by Michael Saylor, the company’s co-founder and executive chairman, on X (formerly known as Twitter) on September 25, 2023. The acquisition was completed for a total cash payment of $147.3 million, averaging $27,053 per Bitcoin.

Regulatory Filing Details

According to a Form 8-K filing submitted to the United States Securities and Exchange Commission (SEC), the latest acquisition took place between August 1 and September 24, 2023. As of the latter date, MicroStrategy and its subsidiaries control approximately 158,245 Bitcoins. These assets were acquired at an average price of $29,582 per Bitcoin, inclusive of all fees and expenditures. The aggregate purchase price for all Bitcoin assets held by the company stands at around $4.68 billion.

Market Context

The acquisition comes at a time when Bitcoin prices have shown relative stability, hovering around the $26,000 mark for several weeks. After peaking close to $28,000 on August 29, the cryptocurrency hit a low of $25,000 on September 11. According to data from CoinGecko, the current market price of Bitcoin is $26,081, representing a 1.9% decrease over the last 24 hours and a 4% decrease over the past week.

Company’s Bitcoin Strategy

This latest acquisition reinforces MicroStrategy’s bullish stance on Bitcoin. Earlier in June 2023, the company purchased 12,333 Bitcoins for a total of $347 million, at an average price of $29,668 per coin. Notably, MicroStrategy reported its first profitable quarter since 2020 in Q1 2023, thanks in part to a one-time income tax gain.

Disclaimer & Copyright Notice: The content of this article is for informational purposes only and is not intended as financial advice. Always consult with a professional before making any financial decisions. This material is the exclusive property of Blockchain.News. Unauthorized use, duplication, or distribution without express permission is prohibited. Proper credit and direction to the original content are required for any permitted use.

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Michael Saylor Believes Bitcoin is the Solution to the Lebanon’s Financial Crisis

by Blockchain News

Michael J. Saylor, Co-founder of Microstrategy has made claims that he believes the use of Bitcoin (BTC) is the solution to the financial crisis that is being experienced in Lebanon as the country’s currency has lost 96% of its value against the U.S. Dollar (USD).

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Saylor gave the opinion on Twitter as he claimed that the commercial banks had failed the country. Lebanon, a country long famed for its stable and investment-friendly financial system, has slid into anarchy as hyperinflation grips the country and banks impose hefty cuts on dollar withdrawals.

The use of digital assets became a thing when Lebanon was experiencing a financial crisis in 2019, a decentralized and seamless digital currency came into play outside the control of bankers and the government according to news reports at the time.

Lebanon presently has 6 bitcoin ATMs. There is one in Aamchit and five in Beirut but those who were interviewed in the report claim the best way to access bitcoin is either by earning it through work/mining or alternatively by purchasing it with the Tether stablecoin.

The Use of Bitcoin as a Tool to Fight Inflation

Satoshi Nakamoto invented the first cryptocurrency, Bitcoin (BTC), in 2008. Bitcoin has since transformed in its usage and monetary forms, money issuance standard, and money mobility thanks to its underlying blockchain technology

Michael Saylor has previously stated that using bitcoin to fight inflation is a viable option. Saylor made a statement last year that corporate investors can use bitcoin to fight inflation. 

He stated that “in order to maintain shareholder value, conventional treasury practices are no longer effective. To control the dilution that monetary inflation has on their balance sheet, corporations need new management strategies. Bitcoin is the ideal solution”.

According to a Paxful survey, Argentina views Bitcoin and other cryptocurrencies as the most effective hedge against inflation. The majority of respondents, according to the study, have used cryptocurrencies to shield themselves from rising inflation, and about 70% of respondents believe that investing in Bitcoin and other cryptocurrencies is extremely safe.

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MicroStrategy is Hiring a Bitcoin Developer to Design Enterprise Solutions

by Blockchain News

American Nasdaq-listed business intelligence firm, MicroStrategy Incorporated has put out a call in search of a Bitcoin Lightning Software Engineer. 

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The firm is looking for a veteran who will help it in designing enterprise-grade solutions that can help startups looking to integrate Bitcoin solutions with security through a Software-as-a-Service (SaaS) platform.

 

“As a Bitcoin Lightning Software Engineer at MicroStrategy, you will build a Lightning Network-based SaaS platform, providing enterprises with innovative solutions to cyber-security challenges and enabling new eCommerce use-cases,” MicroStrategy detailed in its job posting.

 

MicroStrategy has accumulated more than 130,000 units of Bitcoin since it declared Bitcoin as its Treasury Reserve Asset (TRA) back in 2020. The company now occupies a very viable position in the crypto ecosystem, helping other institutional grade investors with education and motivation to adopt the digital currencies also.

 

With the new Bitcoin developer that is being projected, MicroStrategy will also seek to establish a reference point by creating a Decentralized Finance (DeFi) focused solution. With the focus to use the Lightning Network, a layer-2 solution built on the Bitcoin network, MicroStrategy is driving a solution that is proven to fasttrack retail payments at a more secure, faster, and cheaper rate.

 

The new engineer will also be tasked with contributing to open source code and representing the firm with top-rated Web3.0 projects.

 

MicroStrategy has yet again, set the pace amongst top institutional investors with a vested interest in digital currencies. With Michael Saylor setting the pace for the company’s Bitcoin embrace, Phong Le is billed to walk in the veteran’s footsteps and establish the firm as the premier digital currency at the top echelon of firms bolstering the general adoption of Bitcoin.

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Bitcoin Is ‘100 Times Better Than Gold,’ Says Michael Saylor

by Blockchain News

Despite the current market pullback, MicroStrategy co-founder and chairman Michael Saylor remains bullish.

The crypto bull not only thinks that Bitcoin will regain its past glory but also sees the flagship cryptocurrency has a lot of potential to grow beyond its current trading level.

Saylor believes that Bitcoin is 100x better than gold and sees it as the next big ‘store of value asset’. The executive said that during the Money Festival hosted by MarketWatch on Wednesday, but the event was first reported on Saturday, September 24. “I think that the next logical stop for Bitcoin is to replace gold as a non-sovereign store of value asset, and gold is a $10 trillion asset as we speak. Bitcoin is digital gold, it’s 100x better than gold,” Saylor said.

During the festival’s Best New Ideas segment, Saylor did not hold back when he predicted the cryptocurrency’s price may reach $500,000 within the next decade. “You can’t inflate it. The half-life of money in Bitcoin is forever. You can move it on billions of computers at the speed of light. So, if Bitcoin goes to the value of gold, it’s going to $500,000 a coin, and I think that happens this decade,” the executive stated.

At the time of writing, Bitcoin was trading at $$18,876.55, down 0.55% in the last 24 hours, according to data from CoinMarketCap. Putting into consideration that Bitcoin is trading at this level now, $500,000 projected by Saylor implies that the cryptocurrency has a potential upside of over 2,500%.

Saylor is putting his money where his mouth is. He told MarketWatch that he personally owns 17,732 Bitcoins that he’s had for “about two years” when he bought them at around $9,500 per coin.

Bitcoin Is Separate from Cryptocurrency

Early this year, Fidelity Investment, a Boston-based investment management firm, issued a report that confirmed Saylor’s sentiments. In February, the investment manager acknowledged that although the world is flooded with cash and various cryptocurrencies, Bitcoin is special because it has the potential for significant price gains.

Fidelity said Bitcoin is a scarce “monetary good,” superior in many ways to other cryptocurrencies, gold, and even government-issued money like the dollar. The investment manager predicted Bitcoin to be a lot higher in the next five to 10 years.

In early August, Saylor stepped down as MicroStrategy CEO. He is now the executive chairman of the software firm, focusing solely on Bitcoin.

MicroStrategy, a publicly traded software company, is the single largest corporate holder of Bitcoin, with over 129,000 BTC on its balance sheet. Just one month after its popular CEO Michael Saylor stepped down, the company bought 301 Bitcoins for about $6 million, and now holds almost 130,000 Bitcoins in its coffers.

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Despite Market Crash, MicroStrategy Buys 301 Bitcoins Worth $6 Million

by Blockchain News

MicroStrategy has done it again. The Virginia-based business software company has bought additional 301 Bitcoins worth around $6 million to its balance sheet.

According to a filing with the U.S. Securities and Exchange Commission (SEC) on Tuesday, MicroStrategy purchased 301 Bitcoins (BTC) between August 2 and September 19 for about $6 million.

The filing stated that the software firm that was co-founded by entrepreneur and Bitcoin advocate Michael Saylor purchased the world’s largest cryptocurrency at an average price of $19,851 per coin. This is the company’s first purchase since June, when it bought 480 Bitcoins worth around $10 million during that time.

MicroStrategy, best known as the largest corporate buyer of Bitcoin, now has almost 130,000 Bitcoins, acquiring them for a total price of $3.98 billion, according to an 8-K filing with the SEC.

Prior to the latest purchase, the firm revealed on September 15 its plans to sell up to $500 million in class A common stock and to use the proceeds to buy more Bitcoins.

In August, Saylor stepped down as CEO of the company and assumed a new role as executive chairman to focus his efforts more on Bitcoin.

How Does MicroStrategy Make Money from Bitcoin?

MicroStrategy is known for owning more Bitcoin than any other publicly-traded company. As of June 14, the Virginia-based business intelligence firm held 129,218 Bitcoins, more than two-and-a-half times as much as Tesla, the next largest Bitcoin owner.

The founder of MicroStrategy believes deeply in the promise of the flagship cryptocurrency that the firm took out a $205 million loan from Silvergate Bank to buy $190 million worth of Bitcoin in April. But since then, the crypto market, which was already plunging, has gone into free fall.

MicroStrategy purchased its first 21,454 Bitcoins for $250 million in August 2020, citing worries the US dollar would lose value due to the Covid-19 pandemic, government stimulus spending, and political uncertainty around the globe.

Everyone gets into the crypto landscape to make money, but not all end up doing that. Many people either give up along the way or lose money because they do not properly understand how to make money with cryptocurrency.

But MicroStrategy understands the principles of making money by investing in Bitcoins. Despite the market plunge, MicroStrategy has continued investing in the largest cryptocurrency. In January, MicroStrategy CEO Phong Le said the company’s strategy with Bitcoin has been to buy and hold for long-term purposes (for at least ten years and more). The company has been using excess cash flows or finding other ways to raise money to continue to put it into Bitcoin.

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Michael Saylor Supports Bitcoin as a Valuable Asset in the Digital Space

by Blockchain News

Michael Saylor the CEO of MicroStrategy Inc. stated that Bitcoin (BTC) is a better tool for trade compared to the use of other physical instruments.

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He highlighted the challenges that come with physical commodities like gold, stocks, and real estate properties. 

 

According to reports from the Australian Crypto Convention. Saylor highlighted the negative experiences that come with owning a physical property such as high increments in taxes associated with their usage, unlike bitcoin. He is of the opinion that the use of bitcoin will reduce the high taxes rate for consumers. Bitcoin has been so secured for so many years now and is always a secured cryptocurrency 

He talked about how physical commodities can’t be moved beyond boundaries adding; “If you have a property in Africa, no one’s gonna want to rent it from you if they live in London. But if you have a billion dollars of Bitcoin, you can loan it or rent it to anybody in the world.”

Saylor highlighted that bitcoin can be carried from place to place, even the smallest piece of it, and can be passed down to children up to the fourth generation going to about 250 years. He also made it known that the only product that can’t be taxed is bitcoin.

Bitcoin’s Potentials in the Digital Economy

In a related interview, Saylor said he was clueless about Bitcoin’s potential until 2020 and wasn’t even thinking of investing in it however this view changed when he saw the persuasive wealth of bitcoin to gold. 

Bitcoin is better than gold due to analysis pointed out by his firm, considering government debts, stock derivatives, and precious metals.

“The return of gold is nothing compared to crypto and in the digital world bitcoin is that currency,” says Michael Saylor.

According to survey results made available by Mizuho Securities Co. Ltd., a sizable portion of US citizens may be planning to invest around 10% of the most recent batch of direct stimulus checks on Bitcoin and stocks.

Many who consider Saylor as a persuasive innovator may be moved to inject funds into Bitcoin per his prompting.

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Ethereum’s Vitalik Takes a Jab at Michael Saylor, Calls Him a “Total Clown”

by Blockchain News

The question of the security status of Bitcoin (BTC) and Ethereum (ETH) seems to be pitching many notable figures in the digital currency ecosystem against one another.

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Known as one of the prominent figures in the crypto space, Michael Saylor seems to have unnerved Ethereum’s co-founder, Vitalik Buterin, with his position that “Ethereum is inherently unethical because its existence violates securities laws which have their basis in the 10 commandments.”

Michael Saylor leads his company, MicroStrategy Incorporated, on a mission to make Bitcoin the primary reserve currency. Thus far, the company has accumulated over 120,000 BTC units, and Saylor is always gushing about how Bitcoin is the revolutionary money for the new world order.

Personalities like Michael Saylor are called Bitcoin Maximalists, believing in no other digital currency and their inherent potential. Taking his pessimism about Ethereum seems to fall on the bad side of Vitalik, who posed a question in a counter tweet;

“Why do maximalists keep picking heroes that turn out to be total clowns?” 

The series of tweets have brought many stakeholders in the digital currency ecosystem to wade in, expressing their thoughts on the issue. While many believe Michael Saylor is wrong for talking down on Ethereum as a security, a whole lot of others believe in reality, the issuance of Ethereum and the role of the Ethereum Foundation do indeed appear to be a security.

The question of what digital currency constitutes a security is one that will always remain vague in the US, at least, until there is some sort of clarity from the appropriate authorities.

The US Securities and Exchange Commission (SEC) is currently in court after suing Ripple Labs for selling XRP coins as securities. The confusion this lack of definition has fueled the stunted growth of the industry, and stakeholders will feel more relieved should the law regarding this be clearly spelt out.

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‘It’s Nothing Without its Energy Consumption’, Says Peter Brandt against BTC

by Blockchain News

Peter Brandt, one of the most vocal critics of Bitcoin (BTC), has taken a jab at the digital currency again, dwelling on the coin’s energy correlation with its value this time.

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Talking throughTwitter, Brandt said Bitcoin does not provide any economic function, ironically highlighting that the most significant view of Bitcoin is when it is seen as enormous energy consumption.

The comment about Bitcoin in itself is a response to a July 19 tweet from Michael Saylor, the co-founder and CEO of MicroStrategy Incorporated, a firm that has accumulated over 140,000 Bitcoin units. In his characteristic manner, Saylor had rained his accolades on Bitcoin as “a digital commodity because it has no issuer and is secured by energy.”

In the criticizing comment, Peter Brandt noted that Bitcoin is “Secured by energy only in the sense that it is useless without an exorbitant use of energy — and then without providing economic function. It is a huge myth that somehow $BTC is anything but energy consumption.”

In what later turned out to be an education session on Twitter, Saylor took time to school Brandt on Bitcoin’s inherent ‘economic function’.

According to Saylor, “All commodities require energy. Since #bitcoin is a commodity, it can serve as global digital money. The economic function is to provide property rights to 8 billion people as well as a global settlement network that has already cleared $17 trillion dollars so far this year.”

He buttressed his points by Posting the chart below:

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It is not uncommon to find critics using the energy utilization of Bitcoin and other Proof-of-Work digital assets to argue for an investor boycott or a ban. EU regulators surmounted such pressure and refused to ban PoW in the newly passed Markets in Crypto Assets (MiCA) bill.

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Bitcoin (BTC) $ 37,917.16 0.43%
Ethereum (ETH) $ 2,087.18 3.00%
Litecoin (LTC) $ 69.94 0.46%
Bitcoin Cash (BCH) $ 222.39 0.09%