MicroStrategy, the largest corporate BTC holder, is once again in the red on its massive bitcoin position. Moreover, the company’s stocks have gone on a freefall today, with a double-digit price slump leading to a multi-year low.
What started in the summer of 2020 – after the COVID-19 pandemic had broken out – became a crypto-world phenomenon. The US software intelligence firm began accumulating massive portions of BTC with frequent purchases, some smaller, some worth billions of dollars and became the largest corporate holder of the primary cryptocurrency.
Following the latest reported purchase earlier this year, MicroStrategy’s BTC holdings are now 129,218 BTC. The company accumulated them at an average price of approximately $30,700.
However, this means that the Michael Saylor-spearheaded organization now sits in an unrealized loss since BTC plummeted in the past few days and dumped to its lowest price tag since December 2020 of $23,000 earlier today.
Simple math shows that MicroStrategy spent just under $4 billion to acquire all its bitcoin holdings. With BTC currently trading at $23,300, this means that the company’s position is now worth around $3 billion, representing a total unrealized loss of a whopping one billion.
During the mid-May correction, MicroStrategy warned that if BTC drops to $21,062, its $205 million loan from Silvergate will get liquidated. However, the firm is prepared to use more of its BTC for collateral to avoid this.
Despite the ongoing crisis, Saylor remains bullish on BTC, predicting a $1 million price tag in the near future.
While the crypto market is in shambles today, the stock markets, indexes, and large corporations have seen corrections as well. One of the worst affected, though, is MicroStrategy.
Being a company with massive exposure to BTC – an asset that it’s down by more than 20% since the last time the markets were opened – MicroStrategy’s stocks have felt the adverse effects.
MSTR is down by 20% on the day as well, currently trading at $155. Earlier today, the shares even dumped below $150 for the first time since the company began accumulating BTC.
MSTR tapped an all-time high at the start of last year, briefly exceeding $1,000. This means, though, that MicroStrategy’s stock is now down by 85% in just under a year and a half.