- An additional 9,245 Bitcoins (BTC) were purchased by MicroStrategy for around $623 million.
- Schiff wasted no time sounding the alarm about the crypto market’s inherent instability.
Following MicroStrategy’s most recent Bitcoin purchase, prominent gold investor and crypto skeptic Peter Schiff openly criticized CEO Michael Saylor. An additional 9,245 Bitcoins were purchased by MicroStrategy for around $623 million, according to Saylor.
A total of 214,246 Bitcoins, valued at $35,160 apiece, are now in the company’s possession as a result of this acquisition. The potential financial losses suffered by MicroStrategy were brought up by Schiff in relation to this incident, who noted that Bitcoin’s value had fallen 15% from its high.
Investors and analysts are taking notice of the fact that MicroStrategy used convertible notes and free cash flow to finance its most recent purchase. The purchase marks a watershed moment in the company’s history of Bitcoin investing.
Inherent Volatility
Still, Schiff wasted no time sounding the alarm about the crypto market’s inherent instability. If Bitcoin’s price fell to $20,000 or $10,000, he estimates that the corporation will lose $3.25 billion and $5.5 billion, respectively.
In spite of Bitcoin’s 6% price drop to $64,300 (its 30-day low), MicroStrategy has maintained its approach. It is clear that the corporation has faith in Bitcoin’s potential for growth in value due to its large holdings of the cryptocurrency.
Still, the financial community is debating the pros and cons of digital asset integration into company balance sheets, and Schiff’s concerns are reflective of that argument. Significant market volatility has recently occurred in the crypto space, coinciding with Peter Schiff’s assessment. Schiff has often warned about market collapses in the past and the high degree of speculation associated with cryptocurrency investments.
Highlighted Crypto News Today:
MicroStrategy Continues Buying Spree, Acquires 9,245 Bitcoin
