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MicroStrategy and BlackRock Will Sell Their Bitcoin, Peter Schiff Believes

Published 2024-08-02, 09:48 a/m
© Reuters MicroStrategy and BlackRock Will Sell Their Bitcoin, Peter Schiff Believes
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U.Today - Yesterday, MicroStrategy announced the purchase of an additional 169 BTC in the past month. Now according to the latest data, MicroStrategy and BlackRock (NYSE:BLK)'s Bitcoin ETF (TSX:EBIT), IBIT, together own approximately 569,000 BTC, which is about $36 billion.

As of today, MicroStrategy owns 226,500 BTC, which is about $15.06 billion. In comparison, the IBIT ETF holds 343,387.46 BTC, which is about $21.7 billion.

Peter Schiff, a well-known crypto skeptic, shared his thoughts on such a large Bitcoin (BTC) portfolio of the two market giants. Schiff suggests it is possible that the companies will have to sell their BTC bags.

What if?

The new post suggests that MicroStrategy may be under pressure from creditors, who may force the company to sell its crypto assets. Schiff says BlackRock's IBIT ETF could be forced to sell Bitcoin if its investors decide to get out of it to cut their losses.

These very losses are inevitable, in Schiff's view, however, because BTC is worthless in the expert's opinion.

What happens to the market when someone decides to sell a large stake could be seen a few weeks earlier in the example of Germany. When selling a $3 billion stake, one of the country's administrative bodies managed to drop the price by 20% within a month.

It is unknown what will happen if Schiff's forecast turns out to be true and BlackRock and MicroStrategy decide to sell their Bitcoin holdings, which are 12 times bigger than Germany's.

This article was originally published on U.Today

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