Bitcoin Sale: MicroStrategy Stock Collapses Following BTC Sale
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After the enterprise software company, better known in recent years as the top corporate buyer of Bitcoin (BTC), unveiled its first-ever sale of the cryptocurrency, MicroStrategy Inc. shares fell to their lowest level since 2020.
The stock is down 75% so far this year and dropped as much as 3.1% on Thursday to $133.77. Bitcoin increased by less than 1% to about $16,629, while falling by 64% from the year’s beginning.
In a filing on Wednesday, MicroStrategy stated that it paid around $42.8 million in cash for about 2,395 bitcoins through its MacroStrategy subsidiary between the beginning of November and December 21. It subsequently used tax reasons to sell 704 of the tokens on December 22 for a total of about $11.8 million, after which it bought 810 more two days later.
Approximately 132,500 bitcoins, totaling more than $4 billion, were held by MicroStrategy as of December 27. The company paid an average of $30,397 for each bitcoin.
MicroStrategy’s Bitcoin Accumulation Sparks Centralization Fears
When Michael Saylor, one of the crypto industry’s leading Bitcoin supporters, announced the second purchase of 2,500 BTC, a plethora of conflicting emotions followed.
Saylor’s tweet received a range of responses. While some crypto aficionados lauded the decision as positive, others raised concerns about the dangers of centralization.
Popular crypto experts Willy Woo and Dan Held alternated between describing Saylor’s move as advantageous for crypto and detrimental. Bitcoiners should only celebrate the use of Bitcoin by “regular people utilizing it to solve issues,” according to Woo.
Dan Held responded by calling the worry of centralization “unnecessary,” noting that Bitcoin’s network structure and control remain decentralized and that owning power does not always equate to control over distribution. Held’s counterargument was premised on the idea that, if decentralization is to be believed, Bitcoin purchases cannot be controlled or regulated.
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