Crypto analyst and influencer Ben Armstrong, also known as BitBoy Crypto, recently shared his thoughts on MicroStrategy’s announcement of their plan to sell some of their Bitcoin holdings in the future. He explains that although Michael Saylor had previously stated they would never sell their Bitcoin, MicroStrategy now finds itself in a position where selling becomes necessary.
Understanding MicroStrategy’s Bitcoin Sale
According to Ben, MicroStrategy’s primary business is a software company, not a Bitcoin holding company. The company has significant debt obligations that must be paid off by 2025, which coincides with the peak of the next bull run.
Ben believes that selling some of their Bitcoin holdings during this time makes sense for MicroStrategy, as they have admitted they don’t make enough money selling software to cover their debts. In fact, MicroStrategy has more debt to pay off in 2028, making the sale even more crucial.
An Advice to MicroStrategy and Crypto Investors
Ben suggests that MicroStrategy should take advantage of the peak of the bull run in 2025 to pay off their debts for 2025, 2028, and beyond. By doing so, they can maximize the value of their Bitcoin holdings and ensure their financial stability. The crypto influencer also offers advice to individual crypto investors, urging them to take profits at the top and not ride their investments down to the bottom.
MicroStrategy has become well-known for its significant investments in Bitcoin. The company first began its foray into cryptocurrency in August 2020, when it announced the purchase of 21,454 Bitcoins, worth approximately $250 million at the time. This marked a major shift in MicroStrategy’s investment strategy, as it started using Bitcoin as a primary treasury reserve asset.
MicroStrategy’s CEO, Michael Saylor, has been a vocal advocate of Bitcoin, frequently discussing its potential as a store of value and an inflation hedge. Saylor’s enthusiasm and the company’s aggressive investment in Bitcoin have garnered significant attention from the media and the crypto community.
As of the time of writing this article, MicroStrategy owns approximately 140,000 BTC coins.
Source: https://coinpedia.org/news/famous-crypto-analyst-reveals-the-strategy-behind-microstrategys-upcoming-bitcoin-sale/