MicroStrategy, Bitcoin

CEO of MicroStrategy could ‘liquidate $200M in Bitcoin on a Saturday’

Michael Saylor said that all $400 million of the Bitcoin reserve holdings of business intelligence firm MicroStrategy could be liquidated at any time.

“In an interview on Sept. 22, Saylor told Bloomberg that although” volatility is not really a reason to sell, “he would not hesitate to dump 38,250 Bitcoin (BTC) from MicroStrategy at a moment’s notice if the yields of an alternative asset were to jump.

Selling such a large amount of crypto assets could easily cause a significant drop in prices. As occurred in June when whales allegedly caused Bitcoin’s price to drop below $9,000. Although Bitcoin was purchased by MicroStrategy in 78,338 separate off-chain transactions. The CEO said it would be much simpler to unload them.

“We can liquidate it any day of the week, any hour of the day,” Saylor said. “If I needed to liquidate $200 million of Bitcoin, I believe I could do it on a Saturday.”

On Aug. 11, MicroStrategy announced that it had purchased $250 million for 21,454 BTC, adopting the cryptocurrency as its primary reserve asset. The firm bought an additional 16,796 Bitcoins for $175 million following the initial investment.

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With the crypto asset ‘s recent 6 percent fall, its total holdings are now valued at approximately $401.5 million. Meaning a negative 3.2 percent return after six weeks. In general, however, Bitcoin was on the rise in 2020. From the $7,000s in January to the $11,000 barrier tested in September.

While originally claiming “Bitcoin’s days are numbered” in 2013. Saylor has since become a major crypto advocate, even apparently embracing a maximalist Bitcoin mindset in a Sept. 20 tweet by calling BTC one of the few “crypto-asset networks.”

The CEO told Bloomberg, “We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold,”. He predicted that, within six months, other businesses would likely invest in Bitcoin.