Over the last several months, a common narrative that has been forced into the minds of almost every crypto investor is the idea that institutional investors are rushing to buy up all of Bitcoin’s supply.
I’ve always been skeptical of this, and upon doing intensive research into this topic, I’ve noticed that barely any companies even hold Bitcoin.
While retail investors account for nearly 95% of Bitcoin’s entire supply, companies hold less than 6%, and most of them have average buy-ins far below $10,000. We haven’t seen an increase in BTC demand from institutional investors for several months.
MicroStrategy Dumping Bitcoin
Michael Saylor may be respected in the crypto community by many, but he has a very shady past and is an overall deceptive CEO.
He was very popular during the 2000’s Dot-Com Bubble, especially after his companies stock went from $120 to over $3,000 in just a few months.
Upon doing research into Saylor’s background, I discovered a fortune magazine article written in June 2001. This article listed Michael Saylor as the #1 biggest loser of the entire bubble after he lost $13.53 Billion, which was over 90% of his net worth at the time.
During that era, SEC launched a massive investigation into Michael Saylor and even accused him of fraud after lying about the companies financials.
After alerting my followers on Twitter about Michael Saylor’s shady past, he quickly blocked me, even though what I wrote was 100% factual.
That say’s a lot…
Michael Saylor on Bitcoin
In 2020, Michael Saylor became one of the first CEOs to fully endorse Bitcoin, and convert a large portion of his cash reserves into Bitcoin.
He now tweets several times a day about how Bitcoin is the best technology in the world, and will eventually surpass $1,000,000+
This is a big contrast to his first mention of Bitcoin when he said it would fail, and suffer the same fate as online gambling.
In my opinion, Michael Saylor doesn’t like Bitcoin. In fact, he only pretends to for marketing purposes. His company used to spend millions on marketing, yet after their Bitcoin purchases, they now spend zero.
His stock’s market cap has risen by billions, as he’s lured in many new investors by making headlines across the crypto space.
It’s a genius tactic, but I strongly believe it will end the same way it ended the last time he tried it in the early 2000s.
Microstrategy Will Now Pay Board of Directors in Bitcoin
MicroStrategy recently filed a form with the U.S. Securities and Exchange Commission (SEC) stating that its Board of Directors has “modified the compensation arrangements for non-employee directors.” The filing explains, “Going forward, non-employee directors will receive all fees for their service on the company’s Board in bitcoin instead of cash,”
To keep Michael Saylor’s promises (lies) of “never selling Bitcoin for hundreds of years”, and protect their companies image, they are using a deceptive tactic to offload their Bitcoin holdings near the peak.
They’re using their reserves to pay directors with Bitcoin (who will later sell, and convert it to cash), so they can avoid filing their sell orders with SEC, and the public. Another genius, but deceptive move.
Tesla selling large amounts of Bitcoin
Tesla’s earnings report highlighted something many Bitcoin investors weren’t prepared for. That they sold roughly $272 million worth of their BTC holdings that they had just accumulated months prior.
We’ve known for a while that Elon Musk has been on the fence about Bitcoin, even saying in a tweet that Tesla’s buys don’t reflect his own opinions and that “Bitcoin is almost as bullshit as fiat”.
While profit-taking is encouraged, and not a bad thing. It’s very suspicious for a company to sell such a large amount of its holdings after just a few months. Tesla still has 99% of its holdings in cash, and less than 1% in Bitcoin, which to me, further shows their lack of full confidence in Bitcoin.
Grayscale Demand Faltering
Over the last few months, Grayscale premiums have flipped negative, they haven’t seen an increase in new clients, and they sold over $60 million worth of Bitcoin.
What’s Causing Bitcoin’s Price Rise?
Bitcoin’s price rise is predominately attributed to Tether, which has been illegally printing billions in unbacked Tether, transferring it to exchanges, then buying up assets to boost the prices.
Tether’s mandatory audits required in their NYAG settlement coming in May should shed the light on what their reserves are, which they’ve adamantly refused on disclosing for 7+ years now.
Tether caused the bull run, and crypto traders needed a perfect narrative to explain the rapid rise in price, so they falsely claim its institutional investors, despite zero evidence.
Are institutional investors not comfortable with buying up here? Are they expecting a bear market soon? Do they know the threat of Tether?
These are all important questions to consider as it’s evident that the top companies holding Bitcoin have gone from accumulating to selling.
As always, I’ll continue to offer my perspective on this matter, and update everyone on any further news that comes out regarding institutional demand (whether it returns, or continues dropping)
Thanks for reading! Have a wonderful day.
Thanks for reading!
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