What Is Your Reaction Of MicroStrategy's Selling and Buying Bitcoin?
Everyone loves to see the crypto market when the price goes up. When Elon Musk started buying BTC in 2021, it broke an all-time high record and made a new all-time high. It was an exciting moment.
When the crypto market is on a downtrend, buying BTC can spike the price but it usually does not change the trend. MicroStrategy's former CEO, and present executive chairman Michael Saylor always talks about how bullish he is about Bitcoin.
They will keep buying and holding BTC. It is as if they will never sell Bitcoin. MicroStrategy's CFO also announced that they are going to have a buy and hold policy. So they will never sell their BTC holdings.
But MicroStrategy sold 704 BTC on December 22, 2022, which is about $11.8 million. So are they breaking their promise? Some people say you cannot trust what big companies say about Bitcoin. They can change their opinion at any time and do the opposite.
Later MicroStrategy bought more Bitcoin and increased their holdings. If you look at the overall picture, MicroStrategy's BTC holding position increases. So they are following what they plan to do. Then why did they sell a portion of their BTC holdings?
MicroStrategy sold a portion of its BTC holdings to get a tax benefit. It shows capital gain before, now they carry capital losses. They want to avail the tax benefits, that's why, MicroStrategy made this move.
Some people are concerned about going too much Bitcoin in a centralized company, that's MicroStrategy. Bitcoin should be adopted by the general people. If some big name holds the most BTC, that will not look good.
Anyone can buy Bitcoin from anywhere in the world. They will always have access to their Bitcoin because they hold their private keys. There is no discrimination here.
I think more and more people will adopt cryptocurrency and hold BTC as a store of value. The bitcoin blockchain is the best example of decentralization and it will be more decentralized as time passes.
This is definitely a bullish sign. And 2023 is a great year to make your move in order to accumulate cryptocurrency. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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Microstrategy seems to be very intent on not paying taxes if they can.
Just like they got into btc to try to escape inflation.
They will do what is best for them. The tax benefit is a good one. I think they do not want to let it go. They may do the same thing in the future to get the tax benefit if the crypto market does not rise.
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