Nasdaq-listed software firm MicroStrategy has added to its bitcoin pile during the ongoing market slump, capitalizing on a regulatory tailwind. The company disclosed in a Wednesday SEC filing that between May 3 and June 28, 2022, it purchased approximately 480 bitcoins for roughly $10.0 million in cash, at an average price of about $20,817 per bitcoin, inclusive of fees and expenses. As of June 28, MicroStrategy and its subsidiaries held a total of 129,699 bitcoins acquired at an aggregate purchase price of approximately $3.98 billion, averaging $30,664 per coin.
Buying the Dip Despite Market Fears
The purchase came during a severe sell-off that pushed bitcoin below $20,000 for the first time since 2020. MicroStrategy had earlier dismissed rumors of a margin call on its bitcoin-backed loan from Silvergate Bank. CEO Michael Saylor has consistently advocated for bitcoin as a treasury reserve asset. “We are in it for the long term… Our strategy is to buy bitcoin and hold the bitcoin, so there’s no price target,” Saylor said in May. “I expect we’ll be buying bitcoin at the local top forever. I expect bitcoin is going to go into the millions.”
SEC Chair Clarifies Bitcoin's Commodity Status
The latest acquisition followed a significant regulatory clarification. On June 28, SEC Chair Gary Gensler stated unequivocally that bitcoin is a commodity, not a security. This distinction removes a layer of regulatory uncertainty for the largest cryptocurrency. Saylor reacted on Twitter: “Bitcoin is a commodity, which is essential for any treasury reserve asset. This allows politicians, agencies, governments, and institutions to support bitcoin as a technology and digital asset to grow the economy and extend property rights and freedom to all.”
Implications for Crypto Regulation
With bitcoin classified as a commodity, primary oversight falls to the Commodity Futures Trading Commission (CFTC). CFTC Chairman Rostin Behnam has separately stated that both bitcoin and ether are commodities. The SEC and CFTC have been collaborating on a unified framework for crypto trading; Gensler recently proposed a “one rule book” approach. Meanwhile, Gensler warned last month that many crypto tokens would likely fail – a view that does not apply to bitcoin under its current classification.
MicroStrategy’s continued accumulation solidifies its position as the largest corporate holder of bitcoin. The company’s stock has become a proxy for bitcoin exposure, and this latest dip purchase signals unwavering conviction among its leadership. As bitcoin’s regulatory status becomes clearer, institutional adoption may accelerate, a trend MicroStrategy is betting on heavily.