MicroStrategy Boosts Bitcoin Holdings; Grayscale Reshuffles Board Amid Refiling ETF Application.
Summary:
MicroStrategy has added 14,620 more Bitcoins to its holdings, as revealed in documents submitted to SEC. Cathie Wood, ARK Invest CEO anticipates some investors could "sell on the news" post the Bitcoin ETF approval, but maintains a long-term optimistic outlook. Simultaneously, Grayscale Investments made significant changes to its board, with the CEO and president stepping down while refiling its Bitcoin ETF application with significant modifications.
MicroStrategy has augmented its Bitcoin reserves by procuring 14,620 additional coins, as revealed by the regulatory documents submitted to the United States Securities and Exchange Commission. In other developments, amid the short-term likelihood of the approval of a Bitcoin ETF, Cathie Wood, CEO of ARK Invest, anticipates some investors to cash in their profits but is optimistic about the long-term scenario. Meanwhile, Grayscale Investments disclosed some major alterations to its board, with the firm's top executives deciding to leave their positions. This happened simultaneously with Grayscale refiling its Bitcoin ETF application with significant modifications.
Between November 20 and December 26, Business intelligence entity, MicroStrategy purchased 14,620 more Bitcoins, as disclosed in documents submitted to SEC. The accumulated cost of the newly added Bitcoins stands at $615.7 million, averaging to $42,110 per coin. The company now proudly boasts a whopping 189,150 Bitcoins, positioning it amongst the world's largest Bitcoin stakeholders. Over the recent months, MicroStrategy has shown an aggressive appetite for Bitcoin, making considerable purchases at regular intervals.
Michael Saylor, MicroStrategy's influential co-founder and executive chairman, has persistently championed Bitcoin since 2020, when the company initially incorporated Bitcoin in its capital portfolio. Numerous investors view this company's stock, MSTR, as a Bitcoin surrogate play, and as reported by Cointelegraph, its value has surged by over 350% in the current year.
As the anticipation rises for the prospective authorization of a Bitcoin ETF, ARK Invest's CEO, Cathie Wood, believes it might temporarily pressurize the Bitcoin price. She opines that investors might decide to 'sell on the news,' cashing in their profits once the Bitcoin ETF gets the regulatory green light in the United States. She suggested in a Yahoo Finance interview that some investors might exploit this opportunity to cash in some profits due to expectations of the approval of a Bitcoin ETF. Though short-term investor selling might result from possible Bitcoin ETF approval, according to Wood, a promising long-term scenario overrides this temporary effect.
Meanwhile in another significant development, Grayscale, the cryptocurrency asset manager, resubmitted an altered S-3 filing on the same day Barry Silbert, Digital Currency Group's CEO and parent company of Grayscale, stepped down from Grayscale's board. Crypto market observers speculate that Silbert's departure could positively impact Grayscale's Bitcoin Trust conversion into a Bitcoin ETF. The decision from the Securities and Exchange Commission is on hold presently.
Barry Silbert's exit was filed with the SEC on December 26, where it was announced Mark Shifke, DCG's CFO, would replace Silbert as Grayscale's board chairman. Besides Silbert relinquishing his position, the other significant point of the S-3 filing was Grayscale conceding to a cash creation model.
This report should not be considered as investment advice. Every investment involves risk and one should conduct proper research before making a decision.
Published At
12/27/2023 10:30:25 PM
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