MicroStrategy has started to profit from Bitcoin!

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MicroStrategy has started to profit from Bitcoin; G7 countries discuss cryptocurrency regulations; IMF repeats call for crypto regulation.

American software company MicroStrategy, the largest institutional owner of Bitcoin (BTC) reserves, has profited from Bitcoin investments.

In its filing with the SEC on April 5, MicroStrategy announced that between March 24 and April 4, the company and its subsidiaries purchased approximately 1,045 Bitcoins for approximately $29.3 million.

MicroStrategy’s total purchase price reached approximately $4.17 billion and 140,000 Bitcoins with an average purchase price of approximately $29,803 per coin.

The fact that the BTC price has risen 6.2% in the last 24 hours and is currently trading at $30,108 means that MicroStrategy’s Bitcoin assets are currently valued at more than $4.2 billion.

MicroStrategy and Bitcoin

MicroStrategy made headlines in 2020 when it purchased $250 million worth of Bitcoin as part of its treasury reserve strategy. Since then, the company has continued to add to its assets.

Bold moves by MicroStrategy were initially met with skepticism, as many in the financial industry were unsure of Bitcoin’s long-term viability as a store of value.

MicroStrategy’s chairman of the board, Michael Saylor, has become a vocal advocate of Bitcoin, arguing that Bitcoin has the potential to outperform traditional asset classes such as gold and equities.

Saylor reiterated that MicroStrategy has no intention of selling Bitcoin holdings in the foreseeable future. At the end of last year, the company had sold some of its assets purely for “tax benefits.”

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G7 countries discuss cryptocurrency regulations

Japanese diplomat Masato Kanda said the G7 will assist developing countries in implementing CBDCs, Reuters reported.

According to Kanda, the problems faced by the global community regarding digital technology will be one of the main topics of discussion at the G7 meetings, which will be chaired by Japan this year.

Emphasis on innovation

Kanda said in a seminar he gave earlier in Washington:

“We must address the risks posed by the development of CBDC by ensuring factors such as appropriate transparency and sound governance.

The G7 will consider how best to help developing countries implement a CBDC consistent with appropriate standards, including a public policy policy for a CBDC as a priority this year.”

China, which is not in the G7, is the leader in digital currency.

Kanda pointed out that although innovation in digital technology provides various benefits, it also carries risks such as destabilization of financial markets.

Kanda noted that the collapse of crypto exchange FTX was a “serious warning call” on the creation of appropriate regulations.

“There are differing views between countries for cryptoassets. However, there is a consensus that more regulation is needed in the wake of the FTX shock.”

IMF repeats call for crypto regulation

The International Monetary Fund (IMF) reiterated its call for regulation, citing the collapse of the FTX and the banking crisis.

In its Global Financial Stability Report published April 11, the IMF repeated its call for “comprehensive regulation” following the failure of crypto companies, including FTX, as well as the bankruptcy of crypto-friendly banks such as Silicon Valley Bank and Signature Bank. According to the financial institution, any regulation regarding crypto companies should include “strict prudent requirements”.

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The following statements were included in the report:

“The collapse of Silicon Valley Bank spread across the entire financial industry and its impact was felt on companies connected to the crypto ecosystem.

The current failure has caused the stablecoins of Circle and Dai, which hold uninsured deposits at the bank, to lose their dollar pegs, resulting in the closure of Signature Bank. These developments raise questions about the viability of digital assets and reinforce the need for appropriate regulation.”

The report stated that 2022 will be a challenging year for the crypto industry. According to the agency, the collapse of FTX affected the industry much more than the collapse of Terra. However, the IMF stated that these collapses did not affect companies outside the crypto space much.