Andrew Tate questions after MicroStrategy fails to move Bitcoin

By TheStreet Roundtable
21 days ago
TATE BTC DADDY HYPE BLACKROCK

Andrew Tate, the former kickboxing champion and controversial online personality, just can't keep himself out of the world of crypto trading.

Tate, who suffered a complete wipeout of his entire trading balance on the crypto derivatives exchange Hyperliquid last month, is not new to digital assets.

Related: Andrew Tate predicts Bitcoin will crash to $26K before its biggest move

The controversial personality who gained notoriety over the charges of rape and human trafficking in Europe has often promoted cryptocurrencies to a large number of followers on social media.

He has launched and promoted meme coins such as Daddy Tate (DADDY), Roost (ROOST), Germany Token (GER), and F*ck Tristan (FTRISTAN), which later collapsed amid allegations of insider trading.

Andrew Tate is pictured inside The Court of Appeal in Bucharest, Romania, on December 10, 2024.

Andrew Tate puzzled by massive MicroStrategy purchase not impacting BTC price

Recently, Tate questioned how Michael Saylor's MicroStrategy (Nasdaq: MSTR), later rebranded to Strategy, bought 10,000 Bitcoin (BTC) "ina (sic) single day" and the move didn't affect the king coin's price at all.

"Explain that to me."

Strategy, the largest public company holding Bitcoin, acquired 10,624 BTC for $962.7 million over the last week. The company's total Bitcoin holdings stood at 660,624 coins worth $60 billion at the time of writing.

Michael Saylor, chairman and chief executive officer at MicroStrategy, during an interview at the Bitcoin 2023 conference in Miami Beach, Florida, US

Though Strategy is a massive Bitcoin whale, even a massive purchase, despite the crypto market pullback and the relentless criticism of the company, couldn't move BTC's price up.

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Crypto experts weigh in on Tate's query

Binance co-founder Changpeng Zhao "CZ" explained that a company buying 1/2000 of the market cap doesn't cause waves.

AcropolisBTC CEO and Strategy shareholder Chase Palmieri explained that the company bought Bitcoin using algorithms designed not to impact price. Strategy acquired the latest stack over a week, not in a day; it only announced the decision one day, he underlined.

Crypto analyst Quinten Francois explained in a long post that large companies like Strategy buy Bitcoin over the counter (OTC), not over crypto trading exchanges.

OTC desks match massive Bitcoin buyers like Strategy with sellers lying off the exchanges, such as miners, early whales, other corporate digital asset treasuries, VCs, market makers, private liquidity, and distressed holders, he expanded.

"All of this happens quietly behind closed doors... None of that goes through the order books, so the chart never reacts."

For instance, an order for 5,000 BTC can take weeks as the OTC desk accumulates coins piece by piece over time and then sells the supply to the buyer, he added. This avoids any visible price spike, he explained.

Related: Andrew Tate blew every Trump-linked token trade, lost nearly $1M

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