Peter Schiff mocks hodlers after MicroStrategy sells 700 BTC

Peter Schiff says will test 2023’s staying power Bitcoin hodlers Michael Saylor after selling 700 BTC for tax relief.

Bitcoin critic and gold bug Peter Schiff pokes fun at bitcoin hodlers who are optimistic about 2023 despite the cryptocurrency plunging 65% in 2022.

Hodlers stand firm despite Schiff’s taunts

Later raise questions On whether or not hodlers would sell if bitcoin reached $5,000, Schiff later asked on Twitter how low the price would have to go before hodlers would accept that they were wrong about bitcoin.

At press time, a majority said they would hold bitcoin even if it went to zero, while around 10% would sell at $5,000. Interestingly, nearly one-fifth said they would sell if it dropped below $1,000. The rest set the sub-$10,000 mark as the cutoff.

Multiple crypto company meltdowns and gloomy macroeconomic conditions have seen bitcoin down almost three quarters from its peak of around $69,000 on November 30, 2022. Investors are looking to de-risk their portfolio amid rising volatility. inflation This created selling pressure for bitcoin, causing it to track equities and other risk assets to the downside.

Saylor Claims MicroStrategy Hoddles To Humanity Despite Recent Sales

But the bear market, which some have predicted could turn into a full-blown recession, hasn’t dampened the enthusiasm of MicroStrategy’s freshmen.

company dip bought againBy adding 2,395 BTC to its balance sheet on December 22, 2022.

recently twitter space round tablemicrostrategy Michael Saylor, Executive Chairman Said technocrat bitcoin investors expect returns from the macroeconomic environment over five to ten years.

In contrast, he said MicroStrategy belongs to a group of extremists who see bitcoin as “good for mankind” and whose long-term investments are aimed at promoting bitcoin adoption.

It is somewhat ironic that the company sold 704 BTC on December 2022 for nearly $12 million, only to buy 810 BTC a few days later.

Sticking to his extremist philosophy, Saylor acknowledged that selling bitcoin results in capital losses that could offset the capital gains tax imposed on Microstrategy’s enterprise software business. A company pays capital gains tax on gains made from the sale of an investment in a particular tax year.

“Operating in a tax-efficient way makes our shareholders feel good,” he accepted, Shirish Jajodia, who is in charge of investor relations of the company, Said“There is no change to our bitcoin strategy, which is to acquire and hold bitcoin for the long term.”

Will MicroStrategy Sell Bitcoin to Keep Shareholders Happy?

But the sale is contrary to Saylor’s promise in a January 2022 Bloomberg interview. Speaking on Bloomberg Studio 1.0, he was quizzed on whether MicroStrategy would sell its bitcoin during an extended bear market.

“Never. No, we are not vendors,” he Said, “We’re just acquiring and holding bitcoin, right? That’s our strategy.”

Fundstrat’s Sean Farrell said MicroStrategy is taking advantage of a loophole that allows it to sell an asset and repurchase it quickly to reduce its tax burden. It can do this because most cryptos are not subject to securities trading regulations.

But it begs the question whether MicroStrategy will take advantage of its bitcoin reserves to keep its shareholders happy. The pressure of rising interest rates in 2022 will put pressure on its share price, which is already down 74%.

MSTR/USD
MSTR/USD | source: trading view

Additionally, the company’s labor costs can increase significantly. software builds to get bitcoin lightning network for the people.

be for[In] crypto latest Bitcoin (btc) analysis, Click here,

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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