Did Michael Saylor buy the minimum of Bitcoin for once?

Business intelligence firm MicroStrategy shows no signs of slowing down on its Bitcoin move. Right around the time Sam Bankman-Fried was being exposed as a fraud, MicroStrategy was raising more Bitcoin (BTC): this time, the company bought as close to bottom as possible. While Bitcoin can always go down, seeing a buy of MicroStrategy around $17K is refreshing. Interestingly, MicroStrategy also sold some BTC earlier this month, but not for the reason you think (more on that later).

Crypto Biz’s latest 2022 newsletter covers MicroStrategy’s purchase of Bitcoin, Fidelity Investments’ foray into the metaverse, Changpeng Zhao’s response to the haters, and the collective problems of Bitcoin miners.

MicroStrategy Increases Bitcoin Share Despite Heavy Loss

Business intelligence firm MicroStrategy raised 2,395 BTC at an average price of $17,181 between Nov. 1 and Dec. 21. (I know the bottom was below $16,000, but that’s close enough for MicroStrategy). He later sold 704 BTC at a loss to offset earlier capital gains. A few days later, the company bought another 810 BTC, bringing its total holdings to 132,500 BTC. MicroStrategy’s top Bitcoin backer Michael Saylor has been adamant that his firm intends to convert its fiat holdings into BTC for the foreseeable future and will continue to hold the flagship digital asset indefinitely. MicroStrategy’s current value of Bitcoin is $2.2 billion compared to an overall cost basis of more than $4 billion, according to Bitcoin Treasuries. It’s pretty brutal.

Public Bitcoin Mining Firms Afflicted With $4 Billion in Collective Debt

Last week, we raised awareness about the impact of cryptocurrency contagion on Bitcoin miners. Mining companies are in a worse position than initially thought. Public miners have amassed more than $4 billion in collective debt, which is hardly sustainable given the scale of the current bear market. Borrowing to fuel business operations and expand capacity seemed like a good idea during the 2021 bull market. Now, these debt levels pose a serious risk. Case in point: Core Scientific, the largest debtor among miners, recently filed for Chapter 11 bankruptcy. Check out how much money other major mining companies owe.

CZ addresses the reasons behind Binance’s recent FUD

Cryptocurrency exchange Binance has been in the news for all the wrong reasons. Its opaque management structure, shady reserve test report, and allegations of “fraudulent concealment” in France all contributed to a coordinated FUD campaign against the company. (Or is the FUD in response to underlying issues on Binance?) Changpeng Zhao, also known as CZ, has posted a series of tweets explaining why people are spreading fear, uncertainty and doubt about the him exchange. In CZ’s view, the FUD was spread by external factors, including paid shillings intended to make his trade look bad. Not sure if I should buy it, but you can read his reasoning below.

Fidelity plans the NFT market and financial services in the metaverse

While cryptocurrency investment activity may be non-existent among large institutions, one major player is expanding its exposure to the sector. Fidelity Investments, which has long been bullish on Bitcoin and digital assets, recently filed trademark applications for several Web3 products and non-fungible tokens in the metaverse. Fidelity said it is exploring a range of investment services within virtual worlds, including pension funds, mutual funds and financial planning services.

Before You Go: What Does 2023 Have in Store for Cryptocurrencies?

By most measures, 2022 has been a terrible year for cryptocurrencies. 2023 can’t get any worse… or can it? Up this week Market report, I sat down with fellow analysts Marcel Pechman and Joe Hall to discuss the year ahead in Bitcoin and digital assets. While remaining optimistic about the future of Bitcoin, 2023 could see a return to basics after the past year’s parade of busts and failures. You can watch the full replay below.

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