Recently, the market witnessed downturns, and for this reason, many firms are hesitant to purchase bitcoin. These firms don’t want to take the risk. Phong Li, chief financial officer at MicroStrategy, said the company would continue to buy bitcoin in spite of the recent decline. He told the Wall Street Journal in an interview that it’s unsure if the firm would buy more bitcoins than last year but would continue to do so.
Remember, this firm purchased reasonable bitcoins last year. According to the paperwork with the Securities and Exchange Commission, this firm had almost 124,391 bitcoins till December 29, 2021. The SEC, meantime, wants MicroStrategy to modify how it reflects its BTC holdings in future filings. The Securities and Exchange Commission asked the firm to make a clear-cut policy for the disclosure of bitcoin holdings.
The company received letters from the securities watchdog asking it to better show the fluctuations of bitcoin in its filing instead of using accounting methods that adjust bitcoin losses. Phong Li wrote a letter last September claiming that the breakdown losses could divert attention from the company’s overall results, although MicroStrategy has since agreed to reconsider its revelation.
Moreover, Le told the Wall Street Journal that he could understand the SEC’s outlook. In addition, he was talking to the news agency the company is not going to sell its holdings and that MicroStrategy is considering other ways to use the “continuous” bitcoin to increase value for investors. Further, he shares the firm is going to buy bitcoin-backed bonds over the next few years. However, according to Phong Lee, this will depend on the market is more liquid. MicroStrategy is going to release its fourth-quarter earnings on February 1.
On the other hand, Bitcoin, which is the largest digital asset in the world of cryptocurrencies, has witnessed a massive drop recently as the entire last week was bearish for the flagship cryptocurrency. The price value of the coin dropped to the figure of $36k, and it is still holding around this price mark. The current sentiment of the king digital currency is still bearish. However, it is likely to climb up in the coming weeks, and the price may touch the figure of $40k soon and may reclaim its bullish trend.
