Think You’re Down? MicroStrategy Has Lost $4B in Paper Profit to Bitcoin Crash
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November 2021, now seems like a long history for crypto traders. At a certain point in that month, bitcoin, the world’s leading cryptocurrency by market cap, was sold at $69,000 per unit.
However, due to several dips that the asset has suffered from, the value has experienced up to a 50% slide. The most recent crash in the value of many cryptocurrencies, including bitcoin, happened less than 24 hours ago.
Bitcoin, for instance, was around $43,000 yesterday, but at the time of writing, its value was around $38,000.The recent dip has caused many traders to lose funds, each depending on the size of their portfolio.
MicroStrategy, the leading publicly traded business intelligence and software company that has been going bullish on bitcoin ever since its first purchase, has most likely suffered the greatest loss. With a total bitcoin holding of 124,391, the company is the largest corporate holder of bitcoin in the world.
Counting from November, last year when the value of bitcoin was at $69,000, MicroStrategy, with its large bitcoin holding, has lost about $4 billion in paper profit as a result of the bitcoin crash.
The software company might seem to have suffered a great loss, however, a look at the record of MicroStrategy’s bitcoin purchase might prove otherwise on a long-term note.
The company’s total holding of 124,391 bitcoins purchased at an average price of $30,159 per bitcoin, including fees and other expenses, was worth about $3.75 billion.
Currently, even after the recent bitcoin slump, MicroStrategy’s total holdings are worth a little over $4 billion, showing more than a billion-dollar profit compared to the capital used.
Will MicroStrategy Finally Sell Its Bitcoin Stash?
At the time of its last bitcoin purchase, the company had a $5 billion worth of bitcoin stash, but with the recent dip, the value has reduced to about $4 billion. Coupled with the bitcoin crash from November and the recent one, MicroStrategy has suffered a great loss. Will it finally yield to the temptation to sell?
In a recent interview, CEO Michael Saylor revealed the company’s determination not to sell its bitcoin stash regardless of market conditions. More so, last year, when the price of bitcoin went down, the company took advantage of the dip and added about 13,005 bitcoins to its portfolio.
So with MicroStrategy’s bullish nature with bitcoin, and taking advantage of a dip, news of the company going bitcoin shopping again might emerge soon instead of the company selling.
Cryptocurrency
