Bitcoin Bulls: Cathie Wood Says the Crypto Will Reach $500K, MicroStrategy Adds 5,050 Bitcoins

Virtual money and digital crypto currency concept.
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Cathie Wood, the founder and CEO of Ark Invest, reiterated her trust in Bitcoin, saying yesterday at the SALT conference held by hedge fund SkyBridge Capital that she believes it will reach “over $500,000.”

Learn More: Institutional Investors’ Bitcoin ETF Appetite Grows, While SEC still Stalling on Approvals
Investing: Here’s How Cathie Wood Picks Her Winning Stocks

“If we’re right and companies continue to diversify their cash into something like Bitcoin, and institutional investors start allocating 5% of their funds towards [Bitcoin] — it could be for other cryptos, as well — we believe that the price will be tenfold of where it is today. So instead of $45,000, over $500,000,” Wood said, according to a video posted on Blockworks’ Twitter account.

Wood also addressed the regulatory climate regarding cryptos, saying that “no regulators wanted to be blamed for preventing the next big technology breakthrough to happen in the U.S.”

“And that has proven true,” she said. Wood also praised chairman Gary Gensler, saying that she is really happy “he understands crypto, and understands the merits of Bitcoin and, in particular, he is a regulator, though, and he’s a hardcore regulator.”

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Related: Crypto Regulation Will Help Pay for Infrastructure Bill, SEC’s Gensler Compares Industry to ‘Wild West’

Wood talked about the recent regulatory issue Coinbase encountered, when it received a Wells notice — the official way regulators tell a company they intend to sue — over Coinbase Lend, the company’s yet-to-be-launched new product.

“What Coinbase did and I was shocked when I saw Wells notice, are you kidding they haven’t even release the product, like what is this? And I think what that Wells notice is doing, it’s a callout by regulators saying “we got to discuss this stuff,” because this is happening very quickly. And I think we are going to bring courts into the system,” Wood said.

More: Elon Musk: ‘I Lose Money on Bitcoin’ But Tesla Likely to Accept It as Payment Again

Other big names are being extremely bullish on Bitcoin, as well. MicroStrategy CEO Michael Saylor affirmed this with a tweet yesterday: “MicroStrategy has purchased an additional 5,050 bitcoins for ~$242.9 million in cash at an average price of ~$48,099 per #bitcoin . As of 9/12/21 we #hodl ~114,042 bitcoins acquired for ~$3.16 billion at an average price of ~$27,713 per bitcoin.”

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The company also announced yesterday that during the third quarter of the company’s fiscal year to date — the period between July 1, 2021 and September 12, 2021 —  it had purchased approximately 8,957 bitcoins for approximately $419.9 million in cash, according to a Securities and Exchange Commission filing.

See: Move Over Cathie Wood: Michael Burry Ups the Ante With Bets Against US Treasuries
Find: El Salvador Adopts Bitcoin Amid Glitches and Security Concerns

As of September 12, 2021, MicroStrategy held approximately 114,042 bitcoins that were acquired at an aggregate purchase price of approximately $3.16 billion and an average purchase price of approximately $27,713 per bitcoin, inclusive of fees and expenses, according to the filing.

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Last updated: September 14, 2021

About the Author

Yaël Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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