The crypto market crashed. They are still buying bitcoin.

“If you name someone the risks they’re taking and they’re otherwise healthy, you can be accused of running the bank or being a troll,” said Michael Saylor, CEO of MicroStrategy, a software company. Accumulated a large reserve of Bitcoin. “It’s hard to explain it theoretically before the accident happens.” But now it happened. “

In 2020, Mr. Saylor announced that MicroStrategy would start stockpiling bitcoin because it had “the potential for more long-term appreciation than holding cash.” At the end of June, the company had 129,699 bitcoins, which it bought for less than $4 billion, according to SEC filings. (With the recent fall in the value of bitcoin, that storage is now worth about $1 billion less than what MicroStrategy paid.)

At the height of the crash, MicroStrategy spent $10 million on 480 bitcoins, even as the price dropped to around $20,000 per coin. The acquisition was the smallest MicroStrategy has made in more than a year. Mr Saylor said the size of the purchase was not an indication he lacked confidence in the currency; It was the most the company could afford, he said, given the cash it had.

“I always wish we could buy more,” he said. “It’s disappointing.”

Mr. Saylor and other maxes have sometimes complained that bitcoin is poorly represented in Washington, where lawmakers have expressed growing concern about the cryptocurrency’s environmental impact.

Some of the crypto advocacy work in Washington is funded by companies offering virtual currencies built on an alternative verification system that requires less energy to maintain. In April, Chris Larsen, the billionaire founder of the cryptocurrency company Ripple, announced he would contribute $5 million to a marketing campaign urging bitcoin to abandon its energy-guzzling mining infrastructure, which proponents argue is vital to the security of the network. and fair.

Now Bitcoin supporters are building their own political machine. This year, David Zell, a bitcoin advocate, launched the Bitcoin Policy Institute, a think tank that pushes a pro-Bitcoin agenda in Washington. The institute argues that concerns about Bitcoin’s energy consumption are overblown.

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