Abdulkarim Abdulwahab
Michael Saylor, the chairman of MicroStrategy, recently directed a statement at the German government following their liquidation of Bitcoin worth nearly $3 billion.
In a recent statement, the German authorities confirmed dumping 49,858 BTC tokens for a monetary value of approximately €2.6 billion or $2.9 billion in under three weeks. The statement characterized the sales as an “emergency” action in line with an ongoing criminal investigation.
Regardless of the stated urgency concerning the transaction, industry leaders have rebuked the government’s decision to liquidate such a substantial amount of Bitcoin, especially at a time when the asset class is rapidly gaining recognition from Wall Street behemoths.
Being Out of Bitcoin is Itself an Emergency
Saylor took to social media on Wednesday to express his disapproval, writing in German that “It’s not an emergency until you run out of Bitcoin.” His sarcastic comment implied that being without Bitcoin constitutes an emergency situation in itself.
Es ist kein Notfall, bis du kein #Bitcoin mehr hast.
— Michael Saylor⚡️ (@saylor) July 17, 2024
Notably, Saylor’s company has been a dedicated Bitcoin investor since 2020, having invested over $8.3 billion to date. As a result, the company is sitting on an unrealized profit exceeding $6.2 billion.
Apart from the MicroStrategy chairman, even German politicians have found the hasty liquidation of Bitcoin concerning.
Lawmaker Joana Cotar lamented that the German government should hold BTC as a reserve currency rather than liquidate the asset. Cotar stressed that a government selling Bitcoin in this era is both imprudent and counterproductive.
In contrast to Germany’s decision to liquidate its Bitcoin holdings, other countries like El Salvador have taken a more progressive stance.
Since 2021, El Salvador has recognized Bitcoin as legal tender, with a current holding of 5,808 Bitcoin valued at over $300 million.
Moreover, the country has even proposed a law that would enable the establishment of private investment banks operating with Bitcoin and other digital assets.
German Government Claims $2.9B Sales was “Market-friendly”
Notably, Germany’s authorities tapped a Frankfurt-based bank to sell the Bitcoin assets through various platforms between June 19 and July 12.
Despite publicly available data suggesting otherwise, the German government claimed its Bitcoin sales were market-friendly. It asserted that the transactions were conducted fairly and gently on the market.
However, Bitcoin’s value plummeted by over 22% during the sale period, from $65,695 to $53,717. Interestingly, after the sales concluded on July 12, Bitcoin has since rebounded, reaching a new monthly high of $66,066 just yesterday.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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