Saylor has continued investing in Bitcoin as he considers it less risky than fiat money and gold. He recently said that the collapse of FTX favored Bitcoin because it is possible to self-custody the pioneering cryptocurrency.
MicroStrategy, the company with the most Bitcoin (BTC), has accumulated USD 1.8 billion in unrealized losses. They have acquired around 130,000 BTC, equivalent to around USD 2.2 billion at current prices.
The company co-founded by Michael Saylor bought that amount of Bitcoin at almost USD 4 billion, an average value of USD 30,369 per unit. Therefore, their coffers have suffered unrealized losses of about USD 1,800.
MicroStrategy Decides Not to Sell Its Bitcoin Holdings
Michael Saylor, the CEO of MicroStrategy, has said that they will not sell their BTC holdings. That means they face significant unrealized losses, as their coffers have depreciated by USD 917.8 million since January.
Since MicroStrategy describes Bitcoin as an intangible asset, they must constantly assess the decline in its value. If they sell their holdings, they must declare capital gains tax (CGT) to the Internal Revenue Service (IRS).
Saylor resigned as CEO of MicroStrategy in August to pursue his Bitcoin strategy after losing USD 1 billion. In September, the company invested USD 6 million of excess cash in 301 BTC, of which the value has fallen by almost 15%.
Since the company began buying Bitcoin in 2020, Saylor has remained firm in his resolve. He considers the pioneering cryptocurrency to be a less risky asset than fiat money and gold.
In February 2021, the American entrepreneur said it was necessary to look for scarce assets amid expansionary monetary environments. He highlighted that Bitcoin is the rarest asset, even above gold.
Michael Saylor Denies Receiving a Margin Call
In June, Saylor denied that Silvergate Capital had offered MicroStrategy a Bitcoin-secured loan of USD 205 million. That supposed margin call would mean that the investor had borrowed money to conduct transactions representing a multiple of an initial amount.
If the margin value falls below a certain threshold, MicroStrategy must pay additional funds to keep the trade open. However, Saylor said they had enough Bitcoin to guarantee the loan unless the price fell below USD 3,500.
Saylor Believes Clearly Stated Regulations Are Crucial
Saylor recently said that the FTX crash represented a blessing for Bitcoin but a disaster for the crypto market. He highlighted that, unlike tokens on exchanges, it is possible to self-custody the pioneering cryptocurrency.
He believes regulators should clearly state the guidelines for registering and exchanging a digital security, currency, or token.
Bitcoin is trading at around USD 16,814 and has accumulated a 1.4% gain over the last 24 hours. While its daily trading volume is above USD 29.98 billion, its market capitalization is about USD 323.21 billion, according to CoinGecko.
Despite the current price of BTC, it is still higher than when MicroStrategy started buying it in 2020. At the time, the company bought 21,454 BTC at around USD 11,652 per unit.
By Alexander Salazar
