Nasdaq-listed software firm Microstrategy has added to its bitcoin treasury just after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler stated that bitcoin is a commodity. In a Wednesday filing with the SEC, the company revealed it purchased approximately 480 bitcoins for about $10 million in cash between May 3 and June 28, 2022, at an average price of roughly $20,817 per BTC, inclusive of fees.
Total Holdings and Cost Basis
As of June 28, 2022, Microstrategy and its subsidiaries collectively held 129,699 bitcoins acquired at an aggregate purchase price of approximately $3.98 billion, resulting in an average purchase price of about $30,664 per bitcoin. The company had earlier dismissed rumors that it might face a margin call on a bitcoin-backed loan from Silvergate Bank.
CEO Says 'We Are in It for the Long Term'
CEO Michael Saylor has consistently advocated a long-term holding strategy. In May, he stated: “Our strategy is to buy bitcoin and hold the bitcoin, so there’s no price target. I expect we’ll be buying bitcoin at the local top forever. I expect bitcoin is going to go into the millions. We think it’s the future of money.” The latest purchase coincided with Gensler’s commodity clarification. Saylor tweeted in response: “Bitcoin is a commodity, which is essential for any treasury reserve asset.” He added that 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.
Regulatory Implications: CFTC Jurisdiction
Gensler’s designation of bitcoin as a commodity means the token falls under the purview of the Commodity Futures Trading Commission (CFTC), not the SEC. CFTC Chairman Rostin Behnam has also confirmed that bitcoin and ether are commodities. The SEC has been seeking to collaborate with the CFTC on a unified rulebook for crypto trading. Gensler warned last month that many crypto tokens will fail. Microstrategy’s continued accumulation signals that institutional investors view regulatory clarity as a green light for further bitcoin adoption as a reserve asset.