{"id":623613,"date":"2023-03-30T13:49:31","date_gmt":"2023-03-30T18:49:31","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/30\/microstrategy-buys-more-bitcoin-as-binance-comes-under-fire\/"},"modified":"2023-03-30T13:49:31","modified_gmt":"2023-03-30T18:49:31","slug":"microstrategy-buys-more-bitcoin-as-binance-comes-under-fire","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/30\/microstrategy-buys-more-bitcoin-as-binance-comes-under-fire\/","title":{"rendered":"MicroStrategy Buys More Bitcoin As Binance Comes Under Fire"},"content":{"rendered":"
\n

The crypto market is declining following MicroStrategy\u2019s news. But there may be more at play than just this single event.<\/p>\n

MicroStrategy\u2019s co-founder Michael Saylor announced on Monday<\/a> that the company just purchased 6,455 bitcoin, equivalent to around $179 million at the press time.<\/p>\n

The investment totals 138,955 ($4.14 billion) in the company\u2019s bitcoin holding.<\/p>\n

In addition, MicroStrategy reportedly repaid a $205 million loan to Silvergate Bank. The crypto-friendly bank discontinued earlier this month after a titanic financial struggle.<\/p>\n

Silvergate Bank and MicroStrategy reportedly entered a loan agreement for the purpose of bitcoin acquisition.<\/p>\n

The software company has borrowed money from many institutions to enrich its bitcoin holding as part of its strategy to hold bitcoin as a treasury reserve asset.<\/p>\n

However, the executive highlighted that instead of repaying the original amount, the company only needed to pay off the loan at a 22% discount, approximately $160 million.<\/p>\n

\n

\u201cMicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3\/23\/23, $MSTR acquired an additional 6,455 bitcoins for $150M at an average of $23,238 per bitcoin and held 138,955 BTC acquired for $4.14B at an average of $29,817 per bitcoin,\u201d<\/em> Michael Saylor said in the announcement.<\/p>\n<\/blockquote>\n

A Losing Bet So Far<\/h2>\n

According to estimates, MicroStrategy suffered a 45% loss by the end of 2022, resulting from a sharp decline in Bitcoin\u2019s price. The recent rally in the market has closed the gap in MicroStrategy\u2019s portfolio.<\/p>\n

MicroStrategy has no plan to stop stacking, regardless of the volatile price movements of the flagship crypto. MicroStrategy sees its bitcoin holdings as a long-term investment rather than a short-term speculation.<\/p>\n

The company has stated that it plans to hold its bitcoin as a treasury reserve asset for the foreseeable future. It encouraged other entities to consider adding bitcoin to their balance sheets.<\/p>\n

As of March 27, 2023, Michael Saylor and his company are two of the entities that own the most Bitcoin.<\/p>\n

Satoshi Nakamoto, a pseudonymous individual believed to be the creator of Bitcoin, and Brian Armstrong, Coinbase\u2019s CEO, are some of the well-known whales.<\/p>\n

Crypto Market Down<\/h2>\n

Saylor\u2019s move to purchase Bitcoin has been historically associated with the price movement.<\/p>\n

The price of Bitcoin mostly went down whenever similar news broke out in the past. Bitcoin is trading at around $26,800 following the decision, a 3.21% decline in the last 24 hours.<\/p>\n

However, the recent decline could result from other news, specifically the latest news regarding the lawsuit against Binance by the U.S. Commodity Futures Trading Commission (CFTC).<\/p>\n

On the day of MicroStrategy\u2019s additional bitcoin purchase, the CFTC brought a lawsuit against Binance Holdings and Changpeng Zhao, the firm\u2019s CEO, claiming that the entities violated trading and derivatives rules.<\/p>\n

In the filing, the CFTC included multiple internal messages from Binance in the lawsuit, which acknowledge that the exchange has processed transactions for terrorists.<\/p>\n

In addition to the accusations of processing transactions for terrorists, the regulators also accused Binance of operating its own trading unit of 300 accounts.<\/p>\n

The CFTC wants the court to impose administrative sanctions on Binance, a permanent ban on trading and account registration, and other penalties if found to be repeat offenders.<\/p>\n

The CFTC has reportedly been investigating Binance since late 2021. The agency has been cracking down on cryptocurrency exchanges that operate in the United States without proper regulatory oversight.<\/p>\n

In the lawsuit, the CFTC continues strengthening its position that Bitcoin, Ethereum, Litecoin, and two stablecoins, USDT and BUSD, are commodities.<\/p>\n

On the other hand, the U.S. Securities and Exchange Commission (SEC) has repeatedly asserted that most cryptocurrencies are securities, except for Bitcoin.<\/p>\n

The lawsuit has caused a stir in the industry, with most cryptocurrencies have been down. Given the stance by regulators globally, the recent CFTC action could be a sign of things to come.<\/p>\n<\/div>\n

Read More<\/a>
\n Nicholas Say<\/p>\n","protected":false},"excerpt":{"rendered":"

The crypto market is declining following MicroStrategy\u2019s news. But there may be more at play than just this single event.MicroStrategy\u2019s co-founder Michael Saylor announced on Monday that the company just purchased 6,455 bitcoin, equivalent to around $179 million at the press time.The investment totals 138,955 ($4.14 billion) in the company\u2019s bitcoin holding.In addition, MicroStrategy reportedly<\/p>\n","protected":false},"author":1,"featured_media":623614,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4041,43078],"tags":[],"class_list":{"0":"post-623613","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"category-microstrategy"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/623613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=623613"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/623613\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/623614"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=623613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=623613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=623613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}