Microstrategy, Bitcoin’s largest corporate investor, suffered a loss
As bitcoin fell below $ 30,000, microstructure also lost ground on its investment in bitcoin. The CEO said that because part of the microstrategy purchases were made on credit, if the price of bitcoin falls below $ 21,000, they may have to pledge another part of their bitcoins for collateral. He stressed that the company does not sell its bitcoins under any circumstances.
To Report Bitcoin, MicroStrategy, Bitcoin’s largest corporate holder, lost ground on its overall investment after the price of the digital currency fell on Tuesday. The company bought its bitcoins at an average price of $ 30,700, and the fall of bitcoins below this level caused their investment in this digital currency to be at a loss.
Bitcoin has not performed well in the last few weeks. The digital currency lost 20 percent of its value in 36 days after ending its uptrend in late March. In the last seven days, the price of bitcoin has fallen even more, falling by 19.47% to close to $ 30,000.
However, Bitcoin’s latest daily red candle also damaged the micro-strategy of one of Bitcoin’s largest holders; Because this candle was closed below the average purchase price of this company. Micro Strategy, whose shares are traded on the Nasdaq, has bought more than 129,000 bitcoins with an average price of $ 30,700. The price of Bitcoin reached its lowest level at $ 29,700 this morning.
The last purchase of this company is related to April. At the time, Micro Strategy had bought 4,167 bitcoins with an average price of $ 45,714 and a total cost of $ 190.5 million. It is worth noting that the institution used a bitcoin-backed loan to finance the purchase. As a result, if the price of Bitcoin falls below $ 21,000, the microstrategy is at risk of margin margin due to the nature of its loan support; This means that because the value of the secured bitcoins for the loan is lower than the guaranteed amount, the bank lending to the microstructure can ask them to increase the amount of the collateral. If the company wants to prevent this from happening and sell its bitcoins, it will have to bail out more bitcoins to support its loans.
Micro-Strategy CEO Michael Silver has also stressed that they will never sell their bitcoins and will increase the amount of secured bitcoins if necessary.
In addition to microstrategy, Tesla, the company led by Ilan Mask, has also lost ground on its bitcoins; Of course, Tesla’s losses occurred before the microstructure, and the average purchase is slightly higher than the microstructure. According to BitcoinTreasuries.net, Tesla bought 43,200 bitcoins last year for a total cost of $ 1.5 billion. Each of the company’s bitcoins costs an average of $ 34,700. In other words, Tesla has about 10 percent unrealized losses by the time of this writing, for a total of about $ 155 million.
It is unknown at this time what he will do after leaving the post.