Sunday, November 29, 2020
Home ZYCrypto MicroStrategy CEO Says Company Could Sell Recently-Acquired Bitcoin Anytime — Here’s Why

MicroStrategy CEO Says Company Could Sell Recently-Acquired Bitcoin Anytime — Here’s Why

Advertisement
   

MicroStrategy recently rocked the crypto world with its blockbuster bitcoin purchase. The Delaware-based software company indicated that bitcoin was a suitable store of value that has a “more long-term appreciation potential than holding cash.”

But despite the company’s massive bitcoin bet, the CEO, Michael Saylor maintains that he’s no crypto fanatic. This means the company can liquidate the BTC it currently owns anytime they see fit. 

Why MicroStrategy Could Easily Dump Its BTC Holdings

In an interview with Bloomberg on September 22, MicroStrategy CEO noted that he was prompted to convert the firm’s cash holdings to bitcoin by the FED’s decision to let inflation run hot. He reiterated his belief that bitcoin is less risky than holding cash or even gold.

However, he stated that his company would not hesitate to sell the cryptocurrency at any time if bond yields skyrocket.

“We can liquidate it any day of the week, any hour of the day. If I needed to liquidate $200 million of Bitcoin, I believe I could do it on a Saturday. If I took a haircut, I believe it would be 2%.”

Unfortunately, bitcoin has plummeted ever since the company acquired it. Saylor, however, clarified that they are not planning to sell in the foreseeable future, despite the asset’s wild volatility. He posited: “Volatility isn’t really a reason to sell. Right now this is the only thing we can find with a positive real yield.”

Advertisement1xbit

More Companies Will Soon Jump On The Bitcoin Bandwagon

Worth mentioning that after Saylor announced the purchase of another $175 million worth of bitcoin, the company’s stocks surged nearly 10%. Additionally, during his interview with Bloomberg, he revealed that he had discussions with the large shareholders and a majority of them complimented his decision to invest in the flagship cryptocurrency.

Saylor further forecasted that other companies will follow in their footsteps and buy bitcoin in the near future.

“It will probably be private companies first because they don’t have as much inertia. The public companies our size, then mid-sized companies.”


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Popular Articles

Tron, Ontology, FTX Token Price Analysis: 29 November

Bitcoin’s dominance was holding steady at the time of writing, with the same noting a figure of 62.92%. While the altcoin market appeared to...

No, You Can’t Buy Shares in Bitcoin

With bitcoin going through an extended bull-run, scammers and con artists have been on hand to exploit a general fear of missing out (FOMO)....

Can RippleNet bridge ‘local CBDCs’ efficiently? This exec thinks so

With the crypto-market rally finally gathering steam over the past few months, many expect the likes of Ripple to take the next step forward....

Stellar Lumens, NEM, DigiByte Price Analysis: 29 November

NEM‘s strong performance over the past couple of weeks could see a setback after it formed a bearish reversal pattern on the charts, a...

Bitcoin’s (BTC) Positive Twitter Commentary is Near a 6-Month High

Quick take: Positive twitter comments related to Bitcoin are near a 6-month high The last time the sentiment was this high, was during the Bitcoin halving...