Even though there is a heavy sell-off happening in the crypto market, MicroStrategy has decided to buy more bitcoins. The announcement from the company came after Chairman of the SEC, Gary Gensler referred to cryptocurrency as a commodity.
Buying the dip
Listed on the Nasdaq, MicroStrategy has decided to take advantage of the bear market and bought the dip again. The software company made a filing with the US Securities and Exchange Commission (SEC) on Wednesday in which it disclosed that it had acquired 480 more bitcoins for a cash price of $10 million.
The filing disclosed that the purchase was made between May 3rd and June 28th and the company had paid a price of about $20,817 for every bitcoin, which includes all expenses and fees. The filing further disclosed that as of June 28th this year, the combined total of the company’s bitcoin holdings was about 129,699. It was further detailed that the total amount that MicroStrategy had spent on the crypto amounted to $3.98 billion and it averaged about $30,664 per BTC.
Recently, there had been rumors flying around the market that MicroStrategy could be facing a margin call from Silvergate Bank for a loan backed by Bitcoin. However, the company denied such rumors. Its chief executive, Michael Saylor had asserted in May that the company was committed for the long-term and they were going to buy BTC and then hold onto it.
The CEO stated that they did not have a price target and they would continue to buy bitcoin. He also stated that he believes that bitcoin would eventually be valued in millions, so they had decided to be patient because they regard crypto as the future of money.
Bitcoin is a commodity
The latest acquisition announcement by MicroStrategy came after the US SEC’s chairman, Gary Gensler said that bitcoin is categorized as a commodity. The company had been in the midst of making its latest purchase when this comment came in. Saylor responded to the statement and said that it is necessary for any treasury reserve asset to be categorized as a commodity.
The chief executive said that bitcoin could be supported as a technology by agencies, politicians, institutions, and governments and could provide freedom to people. If Bitcoin is classified as a commodity, then it means that its oversight will be done by the Commodity Futures Trading Commission (CFTC). Rostin Behnam, the derivatives watchdog’s chairman, had recently referred to both bitcoin and ether as commodities.
The SEC chair did clarify that he was only defining bitcoin as a commodity and not all cryptocurrencies because some of them have characteristics of security. Therefore, it is working to collaborate with the CFTC as well as other regulatory authorities for ensuring comprehensive crypto regulation. Gensler had suggested a ‘one rule book’ for overseeing the crypto market last week. He had also issued a warning in the previous month that a number of cryptocurrencies and tokens would fail, as evident from the crypto market’s condition.
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