Microstrategy, the Nasdaq-listed software company and the largest publicly traded corporate holder of bitcoin, has bought the dip once again. In a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday, the company disclosed that between May 3 and June 28, it acquired approximately 480 bitcoins for about $10.0 million in cash, at an average price of roughly $20,817 per bitcoin, inclusive of fees and expenses. As of June 28, 2022, Microstrategy together with its subsidiaries held an aggregate of 129,699 bitcoins, acquired at a total purchase price of approximately $3.98 billion and an average price of about $30,664 per bitcoin.
Microstrategy's Long-Term Bullish Stance
The latest purchase comes as bitcoin prices have been under heavy selling pressure, trading near $20,000. Despite the steep decline from all-time highs, CEO Michael Saylor has repeatedly emphasized the company’s commitment to holding bitcoin for the long term. In May, he stated: “We are in it for the long term … 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.” He added, “I expect bitcoin is going to go into the millions. So, we’re very patient. We think it’s the future of money.” Microstrategy also recently dismissed rumors that it was facing a margin call on a bitcoin-backed loan from Silvergate Bank.
SEC Chairman Declares Bitcoin a Commodity
The timing of the purchase closely followed a key regulatory clarification. SEC Chairman Gary Gensler stated earlier this week that bitcoin is a commodity, not a security. This places bitcoin under the jurisdiction of the Commodity Futures Trading Commission (CFTC), not the SEC. Gensler has proposed a unified rulebook for crypto trading and recently warned that many crypto tokens will fail. CFTC Chairman Rostin Behnam has also affirmed that bitcoin and ether are commodities. In response to Gensler’s statement, Saylor tweeted: “Bitcoin is a commodity, which is essential for any treasury reserve asset.” He continued, “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 and Market Outlook
The SEC’s clarification reduces regulatory uncertainty for bitcoin, as commodities are subject to a different framework than securities. The SEC and CFTC are reportedly collaborating on a comprehensive regulatory approach for digital assets. Microstrategy’s continued accumulation, even amid a bear market, signals strong conviction among institutional players. With over 129,000 BTC on its balance sheet, Microstrategy remains a bellwether for corporate bitcoin adoption. The market will watch for further regulatory developments that could influence the classification of other cryptocurrencies.