Holding crypto investments might be a difficult pill to take as the bear market hits. Take a look at two of the largest publicly traded corporations’ bag holders. They’ve lost nearly $2 billion on their Bitcoin (BTC) purchases.
The 130,000 and 43,00 Bitcoin held by Microstrategy and Tesla, respectively, are worth significantly less, according to Bitcointreasuries.net.
Michael Saylor spent about $4 billion ($3,965,863,658) purchasing 129,218 BTC, or around 0.615 percent of the 21 million total supply, for Microstrategy. The price of Bitcoin has plummeted, wiping out prior gains: the investment is now worth $3.1 billion ($3,074,987,824), a $900 million loss. In addition, Microstrategy stock (MSTR) fell to its lowest levels in months in premarket trade on Monday.
Elon Musk’s $1 billion profit has gone south after his Tesla car firm purchased over 40,000 Bitcoin during the 2021 bull market. The $1.5 billion cost basis for 43,200 BTC, or 0.206 percent of total Bitcoin supply, is currently worth $1 billion ($1,017,789,280), a drop of about $500 million.
The overall impairment loss (value loss) shared by the rich Bitcoin believers is estimated to be around $1.4 billion. Because both companies are publicly traded, the July quarterly results will reveal just how much each is losing on its Bitcoin assets.
Bitcoin’s market valuation once eclipsed Tesla’s in November of last year. Tesla’s market capitalization is currently about $721 billion, whereas Bitcoin is valued at less than half a trillion dollars. Similarly, the overall market capitalization of cryptocurrency is slipping below one trillion dollars.
The scenario for Microstrategy is even worse. If the price of Bitcoin reaches $21,000, Saylor will have to repay a loan.
Saylor had earlier made amends with investors by informing them that the $205 million loan it had taken out required $410 million as collateral. Nonetheless, if the price stays steady, moneybags Microstrategy has more than 115,000 BTC to pledge.
