However, the asset’s value has plummeted by up to 50% as a result of repeated drops. Fewer than 24 hours ago, the value of various cryptocurrencies, including bitcoin, plummeted.
Bitcoin, for example, was over $43,000 yesterday, but it was around $38,000 at the time of writing. Many traders have lost money as a result of the recent dip, depending on the size of their portfolio.
MicroStrategy, the largest publicly traded business intelligence and software company that has been bullish on bitcoin since its inception, is likely to have suffered the highest losses. With a total of 124,391 bitcoins, the company is the world’s largest corporate bitcoin holder.
MicroStrategy has lost about $4 billion in paper profit as a result of the bitcoin crash, dating back to November of last year, when the value of bitcoin was at $69,000.
The software company may appear to have suffered a significant loss, but a glance at MicroStrategy’s bitcoin buying history suggests differently in the long run.
The company’s total holdings of 124,391 bitcoins, purchased at an average price of $30,159 per bitcoin, were worth around $3.75 billion after fees and other charges.
Despite the recent bitcoin drop, MicroStrategy’s total holdings are currently valued a little over $4 billion, representing a profit of more than a billion dollars when compared to the capital invested.
The company had a $5 billion bitcoin hoard at the time of its previous purchase, but with the recent drop, the value has dropped to around $4 billion. MicroStrategy has sustained a significant loss as a result of the November bitcoin meltdown and the subsequent one. Will it ultimately succumb to the pressure to sell?
CEO Michael Saylor indicated in a recent interview that the corporation is adamant about not selling its bitcoin stockpile, regardless of market conditions. Furthermore, when the price of bitcoin dropped last year, the corporation took advantage of the opportunity and added 13,005 bitcoins to its portfolio.
As a result of MicroStrategy’s bullish attitude toward bitcoin and its willingness to buy on a dip, news of the business going bitcoin shopping again rather than selling could emerge shortly.
© 2015-2023 Coinposters. All rights reserved!