While bitcoin (BTC) was already showing signs of weakness (falling in price), the situation has worsened in recent days. Indeed, the king of cryptocurrencies lost a lot of value, which caused big losses for whales like Tesla and MicroStrategy.
Tesla loses a lot
The current price bitcoin is around $26,350 according to data from CoinMarketCap. The last time BTC dropped to such a low price was in December 2020. At that time, the whales had lost a lot of money due to the digital asset’s price drop. Unfortunately, this is still happening.
At the start of 2021, the company carried out a investment of nearly $1.5 billion in cryptocurrency, when its price was $31,260. Subsequently, the company sold 10% of its BTC holdings in a bid to test liquidity. This operation allowed him to generate considerable income of the order of 101 million dollars, according to the SEC.
Even when BTC soared and its value rose in the year 2021, Elon Musk did not sell even a part of the company’s reserves. Currently, bitcoin is at a price that is 10% lower at the price at which the Tesla company had purchased its BTC stash. It should be noted that she has in her cases a total of 42,000 BTCor about $1.19 billion.
MicroStrategy also loses a lot
Tesla is not the only company to be overwhelmed due to the decreasing price of BTC. Another company that is also affected is called MicroStrategy. Since August 2020, Michel Saylor’s company has purchased 129,218 bitcoins at an average price of $30,200 the room. At this price, Microstrategy’s bitcoin holdings are worth $3.9 billion. But with the fall in the price of cryptocurrency, the company’s assets are now only worth $3.6 billion.
Elsewhere, MicroStrategy stock also fell sharply. At the current price of $148, this stock is down 11.5%. According to a report published on April 18 by Arcane Research, contrary to the maximalist doctrine that bitcoin (BTC) is a store of value comparable to “digital gold”, the currency trades more like a technology stock.
Due to the recent decline in the value of bitcoin (BTC), the situation is becoming increasingly difficult for some companies, especially whales. For example, Tesla and MicroStrategy recorded big losses and they are not the only ones. Shares of Coinbase, PayPal and Robinhood also fell 23%, 3% and less than 1% respectively.
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