Roger Ver, a leading cryptocurrency advocate and early Bitcoin investor, has urged a US court to dismiss tax evasion charges filed against him. He is most popularly known as ‘Bitcoin Jesus’ among his 745,000 followers on X (formerly Twitter). 

Ver, 45, was arrested in February while attending a crypto conference in Barcelona. He is facing allegations of evading over $48 million in taxes and filing a false tax return.

Bitcoin Jesus Claims His Arrest Was Politically Driven

The charges are based on the sale of $240 million worth of cryptocurrencies and an “exit tax” linked to Ver’s renunciation of US citizenship in 2014. Prosecutors are seeking his extradition from Spain, where he awaits a court decision.

According to Bloomberg reports, Ver’s legal team has dismissed the indictment as politically motivated. They claim it represents the Biden administration’s heavy-handed approach to cryptocurrency enforcement. 

His lawyers argue the charges are part of a broader effort to regulate the sector through enforcement rather than clear policy measures.

Meanwhile, the case has drawn widespread attention in the cryptocurrency industry. Critics are accusing the US government of targeting high-profile crypto figures to set an example. 

“His crime? He didn’t commit one, but that doesn’t matter in the age of American Lawfare. What Roger did do was promote a revolutionary decentralizing technology that radically empowers citizens,” popular author Bret Weinstein wrote on X (Formerly Twitter)

Ver has been a vocal critic of US crypto regulation. He has long advocated for decentralized financial systems and the adoption of Bitcoin as a global currency. 

However, the government has successfully prosecuted several high-profile crypto figures over the past year. Earlier today, former Celsius CEO Alex Mashinsky pled guilty to multiple fraud charges. 

The government has also successfully prosecuted all major affiliates of Sam Bankman-Fried linked to the FTX collapse. 

A Legacy in Bitcoin

Nicknamed “Bitcoin Jesus,” Ver was among the first to promote Bitcoin when its value was less than $1. He would often give away BTC to followers to encourage adoption. He has also invested in leading crypto companies such as Ripple Labs, BitPay, and Kraken.

Born in the US, Ver moved to Japan in 2006 and became a citizen of Saint Kitts and Nevis in 2014 after renouncing his American citizenship. 

His arrest by Spanish authorities earlier this year has reignited debates on US cryptocurrency regulations and the treatment of industry pioneers. However, this is not his first legal battle. Ver has previously faced multiple lawsuits from crypto companies, including Genesis and ConFLEX. 

MicroStrategy has purchased $1.5 billion worth of Bitcoin, while Marathon Digital Holdings is raising $700 million to extend its Bitcoin purchases. 

MicroStrategy’s acquisition adds 15,400 bitcoins to its portfolio, bringing its total holdings to 402,100. The company now owns nearly 2% of the capped 21 million bitcoin supply.

Public Companies Continue an Extensive Trend of Bitcoin Purchases

This purchase further extends MicroStrategy’s lead as the largest corporate Bitcoin holder. In November alone, the company purchased over $12 billion worth of BTC. The latest acquisition was completed at an average price of $95,976 per bitcoin. 

Despite this move, MSTR stock prices fell nearly 1% during Monday trading. However, its year-to-date gains have mirrored Bitcoin’s performance, surging by nearly 500% so far this year. This rally recently placed MicroStrategy among the top 100 public companies in the US. 

Since its first Bitcoin purchase in 2020, Saylor has advocated for companies to use Bitcoin as a treasury reserve asset. He also recently suggested Microsoft’s board of directors and its CEO Satya Nadella to invest in Bitcoin, saying that Microsoft should be powered by digital capital. 

Earlier in October, Microsoft’s board urged its shareholders to vote against a proposal that suggested that the company diversify its portfolio through Bitcoin. 

“There’s a pretty low supply of Bitcoin over the counter, so you have a supply shortage, and if Bitcoin moves above $100,000, there will be a big chase. I’m still confident that Bitcoin is going to close much higher before year-end, well above $100,000. It’s just a matter of time,” Entrepreneur Thomas Less said on CNBC today. 

Meanwhile, Bitcoin mining firm Marathon Digital Holdings (MARA) announced a $700 million private offering of 0% convertible senior notes due in 2031. The offering, subject to market conditions, will target institutional investors under the Securities Act.

The notes, classified as unsecured senior obligations, will not bear interest. At the company’s discretion, they may be converted into cash, MARA common stock, or a combination of both.

MARA plans to allocate $50 million from the proceeds to general corporate purposes, including Bitcoin purchases, capital expenditures, and other growth initiatives. Additionally, part of the funds will go toward repurchasing its 2026 convertible notes to optimize its capital structure.

These developments highlight the growing interest in Bitcoin as a strategic asset among publicly traded companies. These firms are demonstrating an extremely bullish outlook for the leading cryptocurrency. Pantera Capital even predicted BTC to reach $740,000 by 2028. 

An analyst broke down the strategy behind the aggressive Bitcoin acquisition being done by MicroStrategy which is gaining attention because of the rising price of the alpha crypto.

Anthony Pompliano, Founder & CEO of Professional Capital Management, understood the mathematical reason behind the company’s investment move but also warned that any investment is exposed to potential risks.

MicroStrategy’s Bitcoin Acquisition

Pompliano said that MicroStrategy is making a bold move to buy more Bitcoin and build up its crypto reserve by using convertible debt to finance the cryptocurrency’s acquisition.

The investment firm offers its shares at a higher price than the current price per share to generate funds for its Bitcoin acquisition.

Pompliano explained that MicroStrategy is selling future equity at a 55% premium to help the company buy more Bitcoin, saying that is a financially attractive move, saying, “This strategy makes sense from a financial perspective.”

Image: Crypto Economy

The analyst said that it is a beneficial strategy for MicroStrategy because it allows the investment firm to gain significant capital which the company is now using to buy a lot of the leading crypto, saying that this approach makes sense mathematically.

The Bitcoin Investment Plan

In October this year, MicroStrategy announced that it would be conducting a Bitcoin shopping spree by raising $42 billion in new capital in the next three years to finance its goal of buying more BTC.

Some analysts consider this Bitcoin investment strategy as a bold move being eyed by the investment firm.

Bitcoin market cap currently at $1.92 trillion. Chart: TradingView.com

According to the company’s executive, the objective of MicroStrategy’s capital-raising approach is to get $21 billion in fresh capital from equity offerings and generate another $21 billion from fixed-income securities between 2025 and 2027.

As of September 2024, MicroStrategy is already the largest Bitcoin holders among the publicly traded companies worldwide. Buying more of the crypto would further boost its position at the top spot among public companies.

Image: Theya Blog

Associated Risks

Pompliano understood the appeal of the Bitcoin proposition, saying that the move could be lucrative for the investment company.

However, the analyst pointed out that investors must not overlook the risks associated with such investments, saying anyone who wants to embrace MicroStrategy’s approach should understand the risks before dipping their feet into it.

“Now, the counterweight to that is there’s a hell of a lot of people I see saying nothing can go wrong. I’m not in that camp,” he said.

Pompliano explained that the investment firm’s strategy is not foolproof, saying that some people assumed that nothing could derail the investment plan.

“I couldn’t sit here and tell you what can go wrong, but what I can tell you is that an alarm goes off in my head when I start seeing everyone saying nothing can go wrong,” he expressed.

He pointed out there are volatility risks when people invest in Bitcoin, adding that the uncertain regulatory environment could amplify the risks associated with the aggressive purchasing of BTC.

Featured image from Canva, chart from TradingView