We previously reported that the price of bitcoin fell below $24,000. The situation is the same with the market as a whole, the capitalization of which has decreased to 970 billion dollars. Against this background, the “whales” of the industry are suffering huge losses, and MicroStrategy is one of them. In May, one of the key BTC holders lost just over $170 million. That same month, CEO Michael Saylor announced that his company had no plans to sell bitcoin.
And even now, when the total losses of MicroStrategy amounted to about a billion dollars, he still stands his ground. Below we will attach some figures that demonstrate the real state of affairs in the company.
Since August 2020, MS has bought back 129,218 bitcoins. The firm spent $3.96 billion on this. Now this portfolio is worth 3.03 billion, and it continues to depreciate. In November, the company could have received 8.8 billion when the price of bitcoin was above 68 thousand dollars.
Over the past year, MicroStrategy’s share price has declined by 73.2%. At the same time, only on Monday, June 13, derivatives “sank” 22.6%. At the same time, for each bitcoin, the company suffers losses in the amount of about 7 thousand dollars, since the average price tag at the time of purchase was 30.7 thousand dollars per “coin”.
At the same time, with a further fall in the BTC rate, Sailor’s company will face margin requirements for a loan from Silverbank Bank. Then MS took out a loan of $205 million secured by a crypto portfolio.
This means that the company will have to buy more bitcoins. This will lead to further depreciation of the portfolio, provoking a “domino effect”.
And amid all this, Sailor continues to exude confidence. On Monday, he addressed his audience on Twitter with the thesis “In #Bitcoin We Trust.” But how long his optimism will last, time will tell as the price continues to fall.