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Peter Schiff says 2023 will test staying power Bitcoin Hotellers Michael Saylor after selling 700 BTC for tax relief.
Bitcoin critic and gold bug Peter Schiff joked that despite the cryptocurrency falling 65% in 2022, Bitcoin hodlers are optimistic about 2023.
Schiff scoffs but the Hodlers stand firm
After poses a question Schiff later asked Twitter whether hodlers would sell if Bitcoin reached $5,000, before admitting hodlers were wrong about bitcoin.
At press time, the majority said they would hold Bitcoin even if it went to zero, while nearly 10% would sell at $5,000. Interestingly, nearly a fifth said they would sell if it went below $1,000. The rest set the sub-$10,000 mark as the cutoff.
On November 30, 2022, due to the collapse of several crypto companies and gloomy macroeconomic conditions, Bitcoin has seen a roughly three-quarter drop from its peak of $69,000. Investors prefer to de-risk their portfolios amid rising. inflammation That created selling pressure for Bitcoin, thus tracking stocks and other risk assets to the downside.
Despite the recent selloff, Sailer says the microstrategy hopes for humanity
But the bear market, which some predict could turn into an outright recession, hasn’t dimmed MicroStrategy’s hodling enthusiasm.
Company Bought the tip againIt added 2,395 BTC to its balance sheet on December 22, 2022.
Recently a Twitter Spaces RoundtableMicroStrategy’s Executive Chairman Michael Siler The technologist said that Bitcoin investors expect returns from the macroeconomic environment in five to ten years.
In contrast, he said, MicroStrategy is owned by a group of maximalists who see Wikipedia as “good for the human race” and whose long-term investments are aimed at promoting Bitcoin’s adoption.
2022 Dec. It’s a bit ironic that the company sold 704 BTC for around $12 million, quickly buying 810 BTC a few days later.
While adhering to his maximization philosophy, Sailer acknowledged that the sale of Bitcoin introduces a capital loss in MicroStrategy’s enterprise software business that could offset the capital gains tax imposed on it. A company pays capital gains tax on any profit it makes from selling an investment in a given tax year.
“Operating in tax-efficient ways is good for our shareholders,” he said Accepted. Shirish Jajodia, Head of Investor Relations of the Company; said“There is no change in our Bitcoin strategy, which is to hold Bitcoin for the long term.”
Will MicroStrategy Sell Bitcoin To Keep Shareholders Happy?
But the sale contradicts Sayler’s promise in a January 2022 Bloomberg interview. Speaking at Bloomberg Studio 1.0, he pressed MicroStrategy on whether it would sell its bitcoin in an extended bear market.
“not at all. No. We are not salespeople,” he said said. “We’re only getting bitcoin, right? That’s our strategy.”
Fundstrat’s Sean Farrell said MicroStrategy uses a loophole that allows it to sell an asset and buy it back quickly to reduce its tax burden. This can be done because most cryptos are not securities subject to wash trading rules.
But that begs the question of whether MicroStrategy will use its bitcoin reserves to keep its shareholders happy. Pressure from rising interest rates in 2022 will put pressure on its share price, which is down 74% year-to-date.
Additionally, the company’s labor costs may increase significantly Develops software Bring Bitcoin Lightning Network to the masses.
to exist[In] The latest in crypto Bitcoin (BTC) analysis, Click here.
Refusal
BeInCrypto has reached out to the company or person involved in the story to get an official statement on the latest developments, but has yet to hear back.
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