Tuesday, December 6, 2022
No menu items!

MicroStrategy BTC Losses Exceed $1 Billion: Director Refuses to Give Up Cryptocurrency

Must Read

Microstrategy has spent almost $4 billion on Bitcoin since August 2020 (MicroStrategy)

The world’s largest corporate investor in Bitcoin lost more than $1 billion worth of its cryptocurrencies following the latest price crash.

Software company MicroStrategy began accumulating Bitcoin in August 2020 and has so far spent $3.97 billion in less than two years.

The company holds about 130,000 Bitcoins, the value of which fell to $2.6 billion after the cryptocurrency dropped another 10 percent on Wednesday morning.

MicroStrategy CEO Michael Saylor said in May that if Bitcoin were to drop to $21,000, then a margin call could be triggered on a $205 million loan Silvergate Bank gave him to buy BTC.

Despite Bitcoin hitting this high on Tuesday and even dipping as low as $20,178 on Wednesday, Saylor downplayed the risks of a margin call.

“As long as the Silvergate loan remains secured with less than 50 percent LTV, there is no margin call,” Saylor wrote in an email to Bloomberg. “We handle it accordingly.”

During the latest downturn this week, Saylor updated his Twitter profile picture to one with laser eyes, indicating his belief that Bitcoin will recover and eventually rise above $100,000.

In a message to his followers on Tuesday, he said that MicroStrategy has no intention of selling Bitcoin, even if it falls below $4,000.

“When MicroStrategy adopted a Bitcoin strategy, it anticipated volatility and structured its balance sheet so it could go unsold during adversity,” he wrote .

Economist and prominent Bitcoin skeptic Peter Schiff responded: “Volatility is one thing. This is a collapse. Did you anticipate something like this? If so, why buy so much Bitcoin in the first place?

Other notable corporate investors in Bitcoin also suffered as a result of the 2022 crypto crash, which saw the price of Bitcoin fall by more than 70 percent from its record high of nearly $69,000 in November.

Tesla , which has 43,200 BTC on its balance sheet, has seen its initial investment drop from $1.5 billion to $921 million based on current prices.


Please enter your comment!
Please enter your name here

Latest News

Brazil’s coffee crop in 2023 will be 50-56 million bags, according to a report

Brazilian farmers will produce a minimum of 50 million and a maximum of 56 million bags of coffee next...

More Articles Like This