Summers also challenged the usefulness of Bitcoin being held as a reserve currency. Major firms such as BlackRock Holdings, MARA Holdings, and MicroStrategy have been doubling their efforts to accumulate Bitcoin. BlackRock reported 7,750 BTC through its ETF, and MicroStrategy more than $17 Billion in Bitcoin unrealized profits following its $100K jump. Crypto leaders have also praised Trump’s appointment of Paul Atkins to the SEC Chair, citing it as an important development in the industry.
Lawrence Summers questions the logic of Strategic Bitcoin Reserve
Lawrence Summers, former United States Treasury secretary, strongly criticised Donald Trump’s plan to create a Bitcoin strategic reserve. Summers called the proposal “crazy”, and said it was a political move to please crypto donors.
Summers argued on Bloomberg TV that a Bitcoin national reserve was impractical and asked why the government would keep a “sterile” inventory of Bitcoin. Summers also said that while the reserves of oil, gold and other commodities have a historical and practical value, Bitcoin does not.
The Summers Show on Bloomberg TV. (Source:YouTube )
Summers said that political motives are driving the idea, adding that it will be a good way to appease wealthy cryptocurrency donors. Trump had previously said that the U.S. should keep the 198,000 BTC worth $19 billion it has seized. Some Republicans who are aligned with Trump, such as Senator Cynthia Lummis advocate legislation which would see the U.S. government purchase and retain 1 million BTC over a period of at least 20 years.
U.S. government Bitcoin holdings (Source: Arkham Intelligence)
Summers, while dismissing the idea of a Bitcoin Reserve, did admit that Trump’s comments about crypto regulations were valid. Summers agreed with Trump that the financial sector should be encouraged and that overregulation may have hindered crypto’s growth. Summers was Treasury Secretary between 1999 and 2001. He advised the crypto conglomerate Digital Currency Group, in 2016.
Lummis supporters argue that Lummis’ Bitcoin reserve proposal could help address the country’s debt of over $36 trillion. Avik Roy of the Foundation for Research on Equal Opportunity warned that Bitcoin should not be overestimated in the face fiscal challenges. Roy said at a crypto summit that while Bitcoin reserves might be beneficial, they do not solve the problem of federal deficits.
Bitcoins – Major players scoop up more bitcoin
Crypto industry has more confidence in Bitcoin that Lawrence Summers. After major firms and one crypto-whale took advantage of the recent crypto drop from $92,957 to $82,957, on December 5, Bitcoin stacking activity surged. BlackRock was the first to buy Bitcoin, buying 7,750 Bitcoins through its Bitcoin spot exchange-traded funds (ETFs). BlackRock now has a total Bitcoin value of $46 billion. Thomas Fahrer, founder of Apollo called BlackRock ETF “the fastest growing ETF in history.”
MARA Holdings, a Bitcoin mining company, also purchased 1,423 Bitcoins worth $139.5 Million in multiple transactions. These acquisitions took place after MARA’s company closed its second convertible note offering of $850 million, money that MARA had set aside for Bitcoin accumulation. MARA now has 22,108 Bitcoins worth $2.17 Billion. The increase is 162 percent compared with last month.
A crypto-whale anonymous also bought 600 Bitcoins worth approximately $58.9 Million during the “Where to Buy” dip. Blockchain data showed that whale’s wallet was only active a few short weeks ago. The first transaction took place on November 24.
Semler Scientific, a health-tech company, also joined in the trend of stacking Bitcoins, buying 303 Bitcoins on December 4 for an average price of $96,779. These purchases took place just hours before Bitcoin Price passed the $100,000 threshold. Semler now has 1,873 Bitcoins worth $182.8 Million.
Collectively, public firms hold approximately 527,026 Bitcoin. This is about 2.66% the total Bitcoin supply. The government holds 2,856 Bitcoin. Asset management companies and private firms hold 1,253 Bitcoin each, and 410 418 Bitcoin respectively.
MicroStrategy Bitcoin profits soar
According to MSTR Tracker, MicroStrategy’s aggressive Bitcoin investing strategy led to unrealized profits of over $17 billion. Under the leadership of Michael Saylor, MicroStrategy has purchased over $23 billion in Bitcoin since 2020. MicroStrategy’s Bitcoin assets grew to more than 40 billion dollars after Bitcoin reached $100,000 for the first-time on December 4.
Tracker MSTR Bitcoin holdings
Its stock also reached new heights as a result of the company’s successful strategy. MicroStrategy shares have risen 463% in value year-to date, surpassing nearly every S&P 500 stock. The company’s market capitalization was close to 90 billion dollars as of December 5, which is almost double its Bitcoin holdings.
MicroStrategy Share Today’s Viral level= Salmon YTD Source:Google Finance
Analysts believe that due to the company’s accelerated Bitcoin acquisition strategy, it could grow in value. Mark Palmer, a benchmark fintech analyst raised MicroStrategy’s Price Target from $450 up to $650. The stock is currently trading at around $386.
MicroStrategy, despite its successes, is committed to its innovative approach and has introduced Bitcoin Yield as a performance metric that measures the ratio between Bitcoin holdings and outstanding shares. The company announced in October its “21/21 Plan” to raise $42 Billion through debt and equity to finance a 3-year Bitcoin purchase campaign.
Ripple and Coinbase praise Trump’s SEC chair choice
Bitcoin’s price could be boosted after US crypto-executives expressed their support of President elect Donald Trump nominating Paul Atkins to become the new chair of SEC. Many in the crypto-industry consider Atkins a highly favorable candidate. He served as SEC Commissioner under George W. Bush between 2002 and 2008, which could indicate a change from Gary Gensler’s enforcement-heavy SEC chairing style.
Katherine Dowling, Bitwise Asset Management’s general counsel in an interview with Bloomberg, called Atkins a great choice and said he would encourage greater collaboration between lawmakers and regulatory agencies like the Commodity Futures Trading Commission. Brad Garlinghouse, CEO of Ripple labs, welcomed Atkins’ appointment as SEC chairman and said that it would bring back “common sense”.
Since a lawsuit filed in 2020, Ripple and the SEC have been at odds. The suit alleged that the company had used XRP to create an unregistered investment. The case against Ripple is ongoing despite a recent $125-million judgment.
Paul Grewal, Coinbase’s Chief Legal Officer, also applauded Atkins and said that his possible appointment was “sorely necessary” for an organization which has been criticized for its regulatory approach towards digital assets. Coinbase also faces a lawsuit from the SEC over unregistered security.
Atkins is connected to both the Blockchain advocacy group Digital Chamber and the crypto industry. He has also suggested that the SEC take a more tolerant stance towards digital assets in order to promote the growth of the industry. Atkins’ nomination will need to be confirmed by the Senate, and the narrow Republican majority may play an important role.
