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MicroStrategy May Increase or Sell its Bitcoin Holdings in the Future

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  • MicroStrategy has released its Q1 financial report
  • MicroStrategy has 91,579 Bitcoin on its balance sheet at an average entry of $24,311
  • The report goes on to explain that MicroStrategy may increase or reduce its BTC holdings in the future
  • This statement comes after Tesla sold some of its Bitcoin for $272 million

MicroStrategy has released its Q1 2021 financial report in which the company states that it now owns 91,579 Bitcoins at an average cost of $24,214 for each BTC.

The company’s CEO, Michael Saylor, went on to explain that the first-quarter results were an indicator that their two-pronged approach to regular business and owning Bitcoin was working. Mr. Saylor elaborated the company’s progress through the following statement.

MicroStrategy’s first quarter results were a clear example that our two-pronged corporate strategy to grow our enterprise analytics software business and acquire and hold bitcoin is generating substantial shareholder value.

We had one of our strongest operational quarters in our software business in years…We continue to be pleased with our bitcoin strategy.

MicroStrategy May Increase or Reduce its BTC Holdings

In the report, Mr. Saylor reiterated that MicroStrategy ‘will continue to acquire and hold additional bitcoin as we seek to create additional value for shareholders’.

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However, the report goes on to clarify that the company of MicroStrategy might increase or sell its Bitcoin holdings in the future as seen through the following statement.

In future periods, MicroStrategy may purchase additional bitcoins and increase its overall holdings of bitcoin or sell its bitcoins and decrease its overall holdings of bitcoin.

News of Tesla Selling its BTC Might Have Motivated MicroStrategy to Issue a ‘Disclaimer’

To note is that MicroStrategy’s CEO, Michael Saylor, is a firm believer that Bitcoin is a greater store of value than Gold.

However, the recent news of Tesla selling $272 million in Bitcoin, might have motivated MicroStrategy to add a statement that selling BTC was a possibility in the future.

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The move by Tesla to offload some of its Bitcoins led to an uproar on the various social media platforms with some members of crypto-Twitter concluding that Elon Musk dumped his bags on them. Below is a screenshot of one such reaction by Dave Portnoy and Elon Musk’s response.

MicroStrategy May Increase or Sell its Bitcoin Holdings in the Future 16

Company Shareholders Come First, then Bitcoin

From the example of Tesla, it can be concluded that MicroStrategy made a wise move in declaring that selling some of its Bitcoin was a possibility in the future. Besides, MicroStrategy, like every other global company, is tasked with first staying true to its shareholders.

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Altcoin

Billionaire Mark Cuban Identifies Altcoin With ‘Most Upside’ As Bitcoin Blasts Above $60,000

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As Bitcoin shoots above $60,000, business magnate Mark Cuban says one altcoin stands above the rest in terms of investment potential.

In a new interview with CNBC Make It, the billionaire says that Ethereum (ETH) is the best crypto prospect on the market.

“As an investment, I think Ethereum has the most upside.”

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Cuban, who previously stated that smart contracts on Ethereum’s blockchain have revolutionized the cryptocurrency market, believes that the second-largest crypto by market cap is the digital asset which most resembles legal tender.

“I wish I had bought [Ethereum] sooner. I think it’s the closest thing we have to a true currency.”

Cuban went on to reiterate his position that Bitcoin (BTC) is superior to gold because not only is its supply scarce, but it’s easier to transfer, store, trade, and fractionalize. That sentiment is shared by fellow billionaire CEO Chamath Palihapitiya of Social Capital and Virgin Galactic.

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Cuban’s comments come on the heels of him saying that customers prefer making payments in Dogecoin (DOGE) rather than BTC at his venues because Bitcoin tends to be a highly appreciable asset.

Ethereum is exchanging hands at $3,839 at time of writing, an 11% increase from its seven-day low of $3,431, according to CoinGecko.

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ProShares Set for Bitcoin Futures ETF Launch on Monday After Apparent SEC Approval

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The US Securities and Exchange Commission has reportedly greenlit the country’s first Bitcoin futures exchange-traded fund (ETF).

ProShares, an ETF provider, filed a post-effective amendment prospectus on Friday that states the company plans to launch the BTC Futures ETF on Monday, a sign that the SEC has approved the product.

The fund doesn’t invest directly in Bitcoin, but it provides price exposure to Bitcoin futures contracts, a first in the US.

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Both Bloomberg and CNBC, citing people “familiar with the matter,” reported earlier in the week that the SEC planned to approve BTC futures ETFs from ProShares and the independent investment firm Invesco Ltd.

Invesco’s ETF is also set to provide exposure to a collection of exchange-traded products (ETPs) and private investment trusts that hold Bitcoin, rather than direct investments in BTC itself.

Last month, SEC Chairman Gary Gensler said he was open to ETFs for Bitcoin futures, noting that they are filed under mutual fund guidelines which provide “significant investor protections.”

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Bitcoin is trading at $61,549.38 at time of writing and is up 6.6% in the past day and more than 40% in the past two weeks, according to CoinGecko.

BTC hit its all-time high of $64,804.72 in mid-April.

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Bitcoin May See Real Peak If ETF Is Approved and I May Cash Out Half My ETH: CNBC’s Jim Cramer

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Jim Cramer shares a common view that Bitcoin has the opportunity to reach a short-term peak or even a real peak if Bitcoin ETFs are approved next week.

Host of CNBC’s Mad Money, Jim Cramer, has talked to Andrew Sorkin from CNBC’s Squawk Box show about the prospects of the Bitcoin price if or when four Bitcoin futures ETFs get the SEC’s approval next week.

Cramer also stated that he may cash out half of his Ethereum stash.

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SEC approval for ETF may push Bitcoin up, Cramer says

Answering Sorkin’s question, Cramer stated that a lot of people believe there is a high chance that the senior cryptocurrency, Bitcoin, may hit a short-term or even a real price peak if four BTC-based ETFs are approved by the SEC next week.

He corrected the host and said that the regulatory agency may approve not just one but four Bitcoin futures ETFs next week.

However, he stated that people are running ahead of a possible ETF approval.

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Bitcoin spikes to $59,500 as chance for ETF approval emerges

Earlier today, the flagship digital currency, Bitcoin, soared to a multi-month high of $59,500 on the Bitstamp exchange. It happened after Bloomberg released a report, saying that so far the Securities and Exchange Commission has not objected to approving multiple Bitcoin futures ETFs that were submitted to it earlier this year.

The Bloomberg article stated that the information had been confirmed by multiple sources close to the SEC and to the matter in question.

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The media giant’s ETF analyst, Eric Balchunas, believes that the likelihood of Bitcoin ETFs getting the green light has now risen to more than 90%. Still, he is not ready to “close the case” yet.

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