MicroStrategy’s Bitcoin Portfolio Expansion

Yesterday, MicroStrategy announced the purchase of an additional 169 BTC in the past month. Currently, according to the latest data, MicroStrategy and BlackRock (NYSE:BLK)’s Bitcoin ETF, IBIT, together own approximately 569,000 BTC, worth about $36 billion.

As of today, MicroStrategy holds 226,500 BTC, valued at approximately $15.06 billion. In comparison, the IBIT ETF contains 343,387.46 BTC, which amounts to around $21.7 billion.

Concerns from Crypto Skeptic Peter Schiff

Peter Schiff, a well-known cryptocurrency skeptic, expressed his opinions on the substantial Bitcoin (BTC) portfolio held by MicroStrategy and BlackRock. He suggests that these companies may be compelled to sell their BTC holdings.

Potential Market Impact

Schiff hypothesizes that MicroStrategy might face pressure from creditors, potentially leading to a sale of their crypto assets. Furthermore, he warns that the IBIT ETF might have to liquidate Bitcoin if investors choose to exit to limit their losses.

In Schiff’s perspective, such losses are unavoidable because he considers BTC to be worthless.

The possible repercussions in the market when a significant stake is sold could be illustrated by a recent incident in Germany. An administrative body sold a $3 billion stake, causing a 20% price drop over a month.

It remains uncertain what will occur if Schiff’s predictions manifest and both BlackRock and MicroStrategy decide to dispose of their Bitcoin holdings, which are 12 times larger than Germany’s selling incident.