By George Ward
MicroStrategy, a software analytics firm with the largest Bitcoin holdings, purchased more BTC recently amid the crypto market crisis. However, the purchase news sparked mixed reactions in the crypto community.
MicroStrategy Buys More Bitcoin Amid Market Crisis
Michael Saylor, the executive chairman of MicroStrategy, took to Twitter recently to announce the company’s BTC purchase. The company’s latest purchase has increased its Bitcoin holdings to 132,500 BTC.
MicroStrategy bought the entire holdings for over $4.03 billion. However, the fall of BTC’s price has affected the valuation of the holding. At the time of writing, the company’s holding is worth just $2.1 billion.
Most of the crypto community commended the company for buying more BTC. However, others chided MicroStrategy, claiming the purchase could negatively affect the market.
A Twitter user called Michael Saylor, a “rock star.” The user argued that Saylor is trying to bank the unbanked in society. Others promised to follow MicroStrategy’s footsteps and accumulate more BTC.
On the other hand, most crypto investors are skeptical about buying crypto, given the current market situation. Most digital currencies have fallen by over 50% from their all-time highs.
Most investors believe MicroStrategy’s actions could cause BTC’s price to fall further. Currently, the coin is trading around the $16,000 mark, dropping from an all-time high of $69,000.
However, the crypto community remains bullish, believing the market will pick an upward pace in 2023.
Two Bitcoin Analysts Evaluate MicroStrategy’s BTC Purchase
On Twitter, two Bitcoin analysts, Dan Held and Willy Woo, had a back-and-forth conversation. Both analysts shared their views on MicroStrategy’s BTC acquisition.
Woo noted that BTC holders should not praise MicroStrategy for adding more BTC to its vault. According to him, MicroStrategy’s actions could lead to centralization as its decision-making process is centralized.
The Bitcoin analysts believed it is better to celebrate when ordinary people buy BTC, not corporations. In contrast, Held defended this argument by stating that there are no risks associated with centralization.
According to him, ownership does not equal network control. Furthermore, the expert emphasized that there is no method to restrict those purchasing Bitcoin.
As a result, individuals or businesses are free to purchase any amount of BTC they like. Meanwhile, the firm’s executive chairman, Michael Saylor, also announced the company’s plan for 2023 on December 28th.
According to Saylor, MicroStrategy wants to launch Lightning Network solutions in 2023. The executive said the firm is already exploring several solutions and software that use the Lightning Network.