Crypto Crash? Not for Billionaire Michael Saylor Who Continues to Buy Bitcoin
Michael Saylor is a die-hard Bitcoin evangelist.
For those who follow the billionaire on the social network Twitter, it is impossible to know that the most popular cryptocurrency Bitcoin (BTC) is going through a turbulent period marked by a more than 72% drop since November — – High time.
“There are a lot of people in the world who need #bitcoin,” Saylor, who is now executive chairman of MicroStrategy (MSTR) the software company he founded, released on September 19.
On the same day, BTC price fell below the symbolic threshold of $19,000.According to the data firm, if the cryptocurrency was trading at around $19,085.34 at the time of writing Coin Tigerprices are down 72.4% from an all-time high of $69,044.77 set on Nov. 10.
longtime bitcoin believer
Given these numbers, Thaler appears to be living in an alternate reality, as the many comments in his tweets usually point to.
“Every time I read these tweets it feels like you’re in therapy – trying to convince yourself that it’s okay to persevere even though you know you’ve made a terrible mistake,” commented one user.
But the billionaire seems to believe in a BTC rally. So he’s betting on the future, ignoring the present and even the short-term future, as the Fed raises interest rates to fight inflation, the highest in 40 years, that could tip the economy into recession, some economists have warned. Those concerns are prompting investors to liquidate risky assets such as cryptocurrencies, including bitcoin.
Saylor just announced that MicroStrategy just got extra bitcoin.
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“MicroStrategy bought 301 bitcoins at an average price of ~$6M, with an average price of ~$19,851 per #bitcoin,” the crypto enthusiast posted on Sept. 20. “As of 9/19/22, @MicroStrategy holds ~130,000 BTC for $3.98 billion, with an average price per bitcoin of ~$30,639.”
The company confirmed in a regulatory filing that the new bitcoins were purchased between Aug. 2 and Sept. 19 at an average price of about $19,851 per bitcoin, including fees and other charges.
It added that it used excess cash to make purchases.
Additional impairment charges?
MicroStrategy appears to have seen the value of its new bitcoin drop, given the cryptocurrency’s current selling price. If this trend continues, this will increase impairment charges related to the company’s portfolio of digital assets that should be registered during the quarter.
The company said BTC-related asset impairment charges of $2 billion in the second quarter weighed on results. In fact, MicroStrategy posted a net loss of $1.06 billion in the second quarter.
Shares of MicroStrategy, which has been affected by the evolution of Bitcoin’s price, are down 62.1% since January.
But nothing seems to be stopping the company, which recently announced plans to issue and sell up to $500 million in stock.
“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin,” the company said.