MicroStrategy bought the first cryptocurrency to avoid liquidation. This was stated by the President of Euro Pacific Capital Peter Schiff.
For the first time I heard @saylor admit that adding #Bitcoin to the @MicroStrategy balance sheet was basically a Hail Mary to avoid liquidating the company. If the only thing $MSTR has going for it is a leveraged speculative position in Bitcoin, than it has nothing going for it.
— Peter Schiff (@Peter Schiff) December 20, 2022
“For the first time I heard [экс-глава MicroStrategy Майкл] Sailor acknowledged that the addition of bitcoin to the balance sheet was, in fact, a desperate attempt to avoid liquidating the company. If the only thing MicroStrategy is capable of is a speculative position with leverage in bitcoin, then it will not work,” Schiff wrote.
He did not specify where exactly Sailor’s words came from, but one Twitter user called Schiff’s interpretation incorrect.
That is not what he said. You distort like those who said Saylor will sell when he said “I can even sell my bitcoins on a Saturday night”. He meant it works 24H.
Here he meant they couldn’t find anything else which protects the company assets.— BullsEye (@GhostofHayek) December 21, 2022
“That’s not what he said. […] Here he meant that they [MicroStrategy] could not find anything else that would protect the company’s assets,” he said.
Sailor repeatedly called bitcoin the most reliable thing in an unstable world and global reserve asset. In August, he left the position of CEO of MicroStrategy and said that the purchase of the first cryptocurrency as a reserve asset was justified.
At the time of writing, the company owns 130,000 BTC worth approximately $2.2 billion.
Later, Schiff spoke about the prospects of bitcoin. In his opinion, quotes will not return to the previous level, even when financial assets affected by the crisis show growth.
The fact that #Bitcoin fell along with financial assets doesn’t mean that it will rise once those markets turn. Bitcoin isn’t a financial asset. It’s a collectable digital token. The Bitcoin bubble popped and collectors will be selling no matter what happens to financial assets.
— Peter Schiff (@Peter Schiff) December 19, 2022
“Bitcoin is not a financial asset. This is a collectible digital token. The bitcoin bubble has burst and collectors will sell no matter what happens to financial assets,” the gold advocate wrote.
In further discussions, Schiff noted that “as long as people are stupid enough” to buy the first cryptocurrency, its price will rise.
More like a fool’s asset. So as long as people are foolish enough to buy #Bitcoin the price will go up. Unfortunately for Bitcoin HOLDers though there are plenty of fools in the world, I don’t thing there are many left willing to buy Bitcoin who don’t already own it.
— Peter Schiff (@Peter Schiff) December 19, 2022
“[…] Unfortunately for the hodlers, although there are enough fools in the world, I don’t think there are many who want to buy bitcoin. [среди тех,] who does not own it,” added the president of Euro Pacific Capital.
Recall that in December, Schiff predicted digital gold to fall below $5,000 and urged investors “not to make a mistake” thinking that the first cryptocurrency forms a minimum at $17,000.
In October, a gold advocate criticized Saylor and CNBC for advertising Bitcoin, accusing them of pumping the asset.
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