Summary: MicroStrategy and Tesla BTC investment review, Salvadorans frustrated with Bukele’s Bitcoin policy


Sustainable energy company and automaker EV Tesla released its third-quarter earnings report on Wednesday, revealing $218 million in Bitcoin exposure. The previous earnings report listed just over $220 million in crypto assets under his name. The current figure therefore shows that the company has not made any adjustments to its Bitcoin portfolio in the three months, unlike in the second quarter when it had a massive sell-off.

Tesla is still one of the largest public holders of BTC, as its wallet remained intact during the third quarter

Tesla CEO Elon Musk announced on the second quarter investor call in June a sale of 75% of his cryptocurrency stash, translating to around $936 million at the time.

“It was important for us to maximize our cash position, given the uncertainty of COVID lockdowns in China,” he said at the time.

Despite the big sale that brought in $64 million in profits, the Musk-led company is still among the biggest holders of Bitcoin, behind MicroStrategy and Galaxy Digital Holdings. The former is the largest public holder with 130,000 BTC acquired cumulatively through a margin call, a $1 billion stock offering, three bond offerings, and four debt transactions. The latter holds 16,400 BTC, while Tesla’s reserve is estimated at 9,720 BTC.

Texas-based car brand EV reported a profit of $3.3 billion on revenue of $21.45 billion in the past quarter as the broader digital asset market came under pressure increased sales. Bitcoin currently has a market capital of $367 billion – a significant drop from the yearly high of around $900 billion. Although not exact equivalents, the market capital figure ranks it higher than banks JP Morgan Chase and Bank of America.

Former MicroStrategy CEO: Bitcoin Is An Economic Machine About To Emerge As A Freedom Machine

In a speech to the Atlas Society on Tuesday, MicroStrategy Executive Chairman Michael Saylor described the royal cryptocurrency as an “economic machine” with the potential to evolve a channel to freedom. The former CEO pointed to Bitcoin’s decentralization as one of the important factors that make it a useful instrument in addressing the challenges of traditional finance. Further, he likened the asset to a union set to grow even stronger as Bitcoin sees more inflows of capital.

“As money moves through the network, the monetary union becomes more powerful. Everyone who joins the network has much more power. Your only hope against the oppressive force of the collective is to unionize your activities and organize your activities with people of similar ideology who believe like you. he said.

Saylor, who previously ran the company before his unexpected resignation in August, has guided the software and business intelligence through its Bitcoin exposure strategy since the first purchase in August 2020. The most recent purchase involved 301 BTC collectively acquired at approximately $6 million. Meanwhile, the first of many repayments and settlements is due in about less than a year and a half, while the closest convertible note offering ($650 million) is expected in December 2025. Next week ( October 27), MicroStrategy is expected to have its third-quarter earnings call.

More and more El Salvadorans view the country’s adoption of Bitcoin as a sloppy and unsatisfactory move

A little over a year ago, El Salvador made history by becoming the first country to make bitcoin an officially recognized currency within its borders after the approval of the heavily championed bitcoin policy. President Nayib Bukele. The Bukele government has decided to make the same a reality by allocating $150 million to support the adoption of the same. More than a dozen months later, the decision to make Bitcoin legal tender has been a mix of good and bad.

Several ministries, including that of Tourism, have reported better figures since then, while the majority of Salvadorans have expressed their disapproval. Barrons a University of Central America (UCA) survey reported Tuesday, October 18, which found that more than three-thirds of residents consider the program a disappointment. The UCA also found that around 75% of Salvadorans have not managed digital assets this year.

While this seems disconcerting, given the Bukele administration’s efforts to popularize and drive adoption, it’s not entirely inconceivable. Aversion to digital assets is reasonable, especially after a long period of restricted action limiting volatile opportunities to exploit. This has been the case for most of this year. El Salvador’s exposure to bitcoin back when the crypto was on its way to an all-time high led to losses on holdings at current prices.

In other bitcoin news, crypto exchange Coinbase and the Blockchain Association have backed Grayscale in its legal challenge to get a BTC exchange-traded fund approved for spot trading in the US market. The latter DC-based advocacy group on Tuesday filed an amicus brief in the digital asset management firm’s bitcoin ETF appeal. These supporting briefs involve (with court approval) other outside parties providing more information without introducing new facts to the court.

“After approving Bitcoin ETPs based on futures contracts, the SEC abandoned its mandate to protect investors and abused its discretion by refusing any application for a Bitcoin ETP based on spot contracts, including the application of Grayscale”, Blockchain Association Policy Officer Jake Chervinsky remarked on this.

Grayscale has pledged to go all out against the Securities and Exchange Commission as it seeks to convert its flagship Bitcoin Trust (GBTC) product into an ETF. Other advocacy groups, including Coin Center and the Chamber of Digital Commerce, are also working to gain amicus status. The SEC, which has consistently rejected requests from asset managers citing market manipulation concerns, is expected to issue its response in the coming weeks.

Investors Pull Bitcoin From Exchanges, Santiment Data Reveals

The continuation of Bitcoin’s narrow-range trading action has seen many investors sideline to watch while ready to pounce on volatile action in any direction possible. BTC volume on exchanges has been declining, with one particular drain being the most notable. The market research and analysis platform Santiment observed on October 18 a sum of 40,572 BTC left exchanges within 24 hours. The leak marked the largest daily amount of Bitcoin to exit exchanges in the past four months.

Daily BTC exchange flow on the Glassnode chain Data for October 22 showed inflows of $462.7 million versus outflows of $543.7 million. The share of Bitcoins on exchanges is currently at 8.48%, the lowest supply share on record in nearly four years. While a decrease in the supply of a token on trading platforms is generally associated with a lower likelihood of a future sale, the latter is not irrelevant. Currency outflows could also be an indicator of the hoarding trend of investors.

To learn more, see our Investing in Bitcoin guide.


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