MicroStrategy bought more bitcoin amid heavy market selling. The announcement came after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler declared that “Bitcoin is a commodity.”
MicroStrategy Buys Dip
Nasdaq-listed software company Microstrategy has once again purchased a dip in bitcoin. In a Wednesdayfilingwith the U.S. Securities and Exchange Commission (SEC), the company declared that between May 3 and June 28, it acquired “approximately 480 bitcoins for approximately $10 million in cash at an average price of approximately $20,817 per bitcoin, including fees and expenses.” The application adds.
As of June 28, 2022, MicroStrategy, together with its subsidiaries, held a total of approximately 129,699 bitcoins.
Overall, the company acquired BTC “acquired at a total purchase price of approximately $3.98 billion, including fees and expenses, and an average purchase price of approximately $30,664 per bitcoin,” the filing further elaborates.
MicroStrategy recently dispelled rumors that it may be facing a margin call on its bitcoin-backed loans from Silvergate Bank.
Michael Saylor, CEO of the Nasdaq-listed software company, said in May ‘We are in it for the long haul … Our strategy is to buy bitcoin and hold bitcoin, so there is no price target. We expect to keep buying bitcoin at local tops forever.” He added, “We expect bitcoin to be in the millions. So we are very patient. We believe it is the future of money.”
The announcement of MicroStrategy’s latest bitcoin purchase comes on the heels of SEC Chairman Gary Gensler’s statement earlier this week clarifying that bitcoin is a commodity. The company was in the process of acquiring its latest batch ofBTC; it was while acquiring its latest batch of BTCthat Gensler commented onthat BTCis a commodity.
Saylor tweeted in response to Gensler’s explanation.
Bitcoin is a commodity, which is essential to any treasury reserve asset.
He continued.” This allows politicians, institutions, governments, and agencies to support Bitcoin as a technology and digital asset to grow the economy and extend property rights and freedoms to all.”
Bitcoin is a commodity and therefore falls under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Derivatives Oversight Committee Chairman Rostin Behnam recently stated that bitcoin and ether are commodities.
The SEC is seeking to work with the CFTC on crypto regulation. Last week, Gensler proposed having “one rulebook” for regulating crypto transactions; the SEC chairman warned last month that many crypto tokens would fail.
Image credit: Shutterstock, Pixabay, Wiki Commons
