Morgan Stanley says changing to Proof of Stake might not solve Ethereum's scaling problems. An equity strategist for Morgan Stanley claims Ethereum beacon-mainnet merge will cause demand for graphics processors to plummet in the coming months. The Ethereum platform has been undergoing a parade of testnets preparing for its merge with Beacon Chain. This merge is a move to facilitate the blockchain's transition from operating a Proof of Work model, to Proof of Stake. The PoW consensus model understandably…
MicroStrategy still doesn’t plan to sell its Bitcoin, according to the company’s new Chief Financial Officer Andrew Kang. The recent bear market, which has brought Bitcoin’s value below the company’s average purchase price, hasn’t shaken the organization’s faith.
“At this time, we do not have any intention to sell,” said the CFO, after joining the company on May 9th hailing from GreenSky. “There are no scenarios that I’m aware [in which] we would sell.”
- Shareholders also remain confident and reportedly remain “very aligned” with the company’s Bitcoin strategy.
- MicroStrategy currently holds at least 129,218 Bitcoin following its latest disclosed purchase on April 5th. Kang refused to comment on whether they’d bought more Bitcoin since then.
- The average purchase price for each Bitcoin was $30,700. Meanwhile, the current price is about $30,300 at the time of writing. Bitcoin crashed this month after the Federal Reserve tightened interest rates by 50 basis points, and the Luna Foundation Guard dumped all of its assets.
- The dip has brought the price closer to MicroStrategy’s margin call level of $21,000 on its Silvergate loan. However, CEO Michael Saylor has stated that the company will simply deposit more of its Bitcoin holdings as collateral for the loan if the price drops that far.
- Unfortunately for MicroStrategy, its software business is losing market share, while its Bitcoin bet is yet to pay off.
- “If they don’t improve the core operations of the software business, they can’t keep buying more bitcoin,” said Brent Thill, a senior analyst at Jefferies Group. “You have an investment strategy in bitcoin that’s clearly not working for the company financially.”
Last quarter, MicroStrategy registered a $170 million impairment charge on its Bitcoin holdings.