Microstrategy, the Nasdaq-listed software intelligence company, has once again expanded its bitcoin treasury, purchasing approximately 480 bitcoins for about $10 million in cash. The acquisition, conducted between May 3 and June 28, 2022, came at an average price of roughly $20,817 per bitcoin, inclusive of fees. This move follows a pivotal statement by U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, who explicitly clarified that bitcoin is a commodity.
Microstrategy’s Growing Bitcoin Hoard
In a regulatory filing with the SEC on June 29, Microstrategy disclosed that as of June 28, the company and its subsidiaries collectively held 129,699 bitcoins. These were acquired at an aggregate purchase price of approximately $3.98 billion, translating to an average cost of about $30,664 per bitcoin. Despite being underwater on its overall position — bitcoin traded near $20,000 at the time of the latest purchase — CEO Michael Saylor remains unfazed. “We are in it for the long term,” Saylor said in May. “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 that bitcoin will eventually reach millions of dollars, calling it “the future of money.”
Regulatory Clarification: Bitcoin as a Commodity
The latest purchase was partly inspired by Gensler’s remarks earlier this week, which provided much-needed regulatory clarity. Gensler stated that bitcoin is a commodity, placing it under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than the SEC. CFTC Chairman Rostin Behnam has echoed this view, confirming that both bitcoin and ether are commodities. The SEC and CFTC are reportedly working toward a unified regulatory framework for crypto trading, with Gensler advocating for “one rule book.” Microstrategy was in the middle of its buying spree when Gensler made the comment — a fact that Saylor highlighted in his own reaction.
Saylor’s Response and Market Impact
Michael Saylor took to Twitter to celebrate the regulatory clarity: “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.” The statement effectively nullifies earlier rumors that Microstrategy might face a margin call on a bitcoin-backed loan from Silvergate Bank. With the new purchase, Microstrategy reinforces its position as the largest publicly traded corporate holder of bitcoin. The broader market continues to digest the macro environment and regulatory developments, but Saylor’s conviction remains unshaken.