Even With Bitcoin at $30K, MicroStrategy and Tesla Continue to Believe in Bitcoin More Than Ever.
When you understand the why of Bitcoin, you can have unwavering confidence.
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Even before Bitcoin fell below $30K in early May 2022, there was again FUD about MicroStrategy quietly selling Bitcoin. Michael J. Saylor was falsely accused by Mr. Whale in late April 2022.
While the price of Bitcoin is around $30K today, Michael J. Saylor's position has not changed one iota. Michael J. Saylor once said that MicroStrategy was ready to HODL Bitcoin forever.
Yet, for the first time in several months, MicroStrategy's position in Bitcoin is in a latent loss:
A relative loss of “only” 3.2%, but still more than $126M in unrealized losses at the time of writing.
This view I am presenting here is the view of those who have not redefined their time horizon with Bitcoin. Michael J. Saylor is not one of them. He knows that the future that awaits Bitcoin is exceptional. He has a de facto interest in HODLing his Bitcoin no matter what. That is why he continues to support Bitcoin.
The tech stock crash in the US equity market is hitting MicroStrategy hard, which is probably preventing Michael J. Saylor from accumulating more BTC right now:
But obviously, we suspect that the desire is there. Michael J. Saylor knows very well that in a few years these price levels for Bitcoin will look very cheap.
So MicroStrategy is still holding 129,218 BTC as I write this. It is funny that the BTC reserves of the company founded by Michael J. Saylor currently represent a higher valuation than the company's valuation on the US stock market. Bitcoin gives investors in MicroStrategy company security. It plays its role as a haven here perfectly.
Tesla is the other major company that has decided to buy Bitcoin as a cash reserve. The Elon Musk-led company had made a $1.5 billion investment in Bitcoin when its price was $31,260. Subsequently, the company sold 10% of its BTC holdings. This transaction allowed it to generate considerable revenue of around $101 million, according to the SEC.
For Elon Musk, it was only a matter of proving to Tesla's shareholders the liquidity of Bitcoin.
Since then, Elon Musk has not touched the Bitcoin held by Tesla. Even as Bitcoin climbed and its value rose during 2021, Elon Musk did not sell even a portion of the company's reserves. Currently, Bitcoin is at a price that is 4% lower than the price at which Tesla bought its BTC reserve.
Tesla has 42,000 BTC in reserve, but Elon Musk does not intend to sell. It would be totally stupid to sell after the more than 50% correction Bitcoin has experienced since its ATH in November 2021. Patience is the key when you believe in a strong asset like Bitcoin, and this is one of the two fundamental pieces of advice that Elon Musk recently delivered to express his strategy on the stock market.
No matter what the Bitcoin naysayers say, MicroStrategy and Tesla will continue to HODL Bitcoin no matter what. Their confidence in Bitcoin should question those who continue to falsely criticize Bitcoin. But one wonders if anything will be able to challenge their bad faith. I have my doubts.
Only the future success of Bitcoin will help turn them to the other side. Like many other naysayers over the past few years. These people will then pay the price for Bitcoin that they deserve. Because that's how it is in the Bitcoin world.
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