German government misses opportunity for Bitcoin surge
A few days ago, the German state government of Saxony missed out on the potential benefits brought about by the surge in Bitcoin prices in its rush to cash out. On July 13, Saxony completed the sale of 50,000 Bitcoins seized from movie piracy website movie2k, a transaction that brought the state approximately $2.87 billion in revenue, compared with its acquisition cost of $2.13 billion in January , earning more than $740 million in profits. However, shortly after the deal was completed, the price of Bitcoin surged by 16.55%, causing the German government to miss out on an additional $124 million in proceeds.
The Saxony state government decided to conduct a so-called "emergency sale" in June amid concerns that the value of Bitcoin could fall by more than 10%. "The sale of valuable items before the conclusion of ongoing criminal proceedings is required by law, especially if there is a risk that the value of these items will fall significantly," the Dresden prosecutor's office said.
MicroStrategy stocks surge with Bitcoin
Meanwhile, MicroStrategy has benefited greatly from its active Bitcoin investment strategy, becoming one of the biggest winners from this trend. MicroStrategy's (MSTR) stock performance has outperformed several tech giants including Tesla, Huida, and Microsoft through July 17, 2024. The company’s stock price rose to $1,800.09 (a 162.73% increase) from $685.15 at the beginning of the year, primarily due to the increase in the value of its Bitcoin holdings.
MicroStrategy currently holds 226,331 Bitcoins, worth approximately $7.538 billion, according to Bitcoin Treasures data. Since it began adopting a strategy of using Bitcoin as a core reserve asset on August 10, 2020, the company’s stock price has soared 1,203%, surpassing Huida’s 1,050% and Tesla’s 167% growth during the same period.
The success of the micro strategy lies in its ability to raise funds through bond issuance to purchase more Bitcoin. In June 2024, the company expanded the bond offering from $500 million to $700 million to support further Bitcoin acquisitions. This strategy has paid off, driving the company’s stock performance and the value of its Bitcoin holdings.
Figure source: Bitcoin Treasures micro-strategy holding number of Bitcoins
Thaler’s firm confidence in Bitcoin
MicroStrategy co-founder and Bitcoin supporter Michael Saylor recently published a confident post on social media platform X, highlighting Bitcoin’s superiority over traditional assets. He shared a chart showing that since MicroStrategy’s first purchase of Bitcoin on August 10, 2020, Bitcoin’s annualized return rate was 55%, while the S&P 500 and Nasdaq were only 14% each. %. Gold and silver have a return rate of 5% and 2% respectively, while bonds have a return rate of -2%.
Thaler emphasized: "Bitcoin is the only way out." He firmly believes that Bitcoin can solve economic problems and constantly calls on other companies to adopt similar strategies. Thaler’s remarks came amid a rebound in Bitcoin prices and showed his optimism about Bitcoin’s future.
Image source: X Michael Saylor emphasized in an article: "Bitcoin is the only way out."
MicroStrategy recently announced a 10-for-1 stock split on August 1, aiming to attract more investors to its Bitcoin strategy. This move will make MSTR shares more accessible and cheaper, potentially attracting more investors to benefit from it.
Bitcoin’s potential in the future
The German government missed out on rising Bitcoin prices, while MicroStrategy reaped huge returns with its aggressive Bitcoin investment strategy. This trend is likely to continue in the future as more companies and investors begin to realize the potential of Bitcoin.
Bitcoin proponents such as Michael Saylor will continue to promote the adoption of this digital asset and demonstrate its potential value as a reserve asset. As the market continues to evolve, Bitcoin may play an increasingly important role in the financial world of the future.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
