MicroStrategy CEO calls China’s Bitcoin-mining crackdown a trillion-dollar mistake

Restrictive measures against the Bitcoin mining industry in China have been a tragedy for miners and a geopolitical misstep by the authorities. This was the view of MicroStrategy CEO Michael Saylor in an interview with Bloomberg.

China’s Bitcoin crackdown will be a «trillion-dollar mistake.»

MicroStrategy CEO Michael Saylor talks to @emilychangtv https://t.co/Eu4ZAUjjhD pic.twitter.com/AJ951tFr39

— Bloomberg Technology (@technology) June 25, 2021

“The main driving force of the market is the outflow from China. This is a forced and hurried exodus of capital and mining from the country, which came as a surprise. China had a 50% share of the Bitcoin market, and they were generating $10 billion a year, growing 100% year over year. I think that given Bitcoin’s growth rate this will be a trillion-dollar mistake,” he said.

The crackdown on mining in China will benefit North American mining operations and Western investors, Saylor says.

“This is a big boon for North American Bitcoin miners, who have the same costs, and they are set to earn 50% to 75% more revenue for some time because the Chinese business is shut down,” he said.

The need to close his operations or relocate due to the ban forced Chinese miners to dump cryptocurrency. That volatility in the market created ‘great opportunities’ for investors, Saylor noted.

“Companies like mine bought Bitcoin around $30,000. We would have paid two or even three times as much if not for the Chinese exodus, so we benefited from this,” he added.

Following the purchase of 13,005 BTC for about $489 million, MicroStrategy increased its crypto-asset holdings to 105,085 BTC.

Subscribe to ForkLog news on VK!