MicroStrategy’s stock falls 20% every day as the company’s BTC holdings fall by $1 billion

Recent falls in crypto and stock markets have impacted MicroStrategy and its stock price.

MicroStrategy, the biggest corporate BTC holder, is once again in the negative with respect to its gigantic bitcoin holdings. In addition, the company’s stock price has plummeted today, plunging by double digits to a multi-year low.

What began in the summer of 2020, after the COVID-19 epidemic had broken out, became a phenomenon in the crypto-world. The U.S. software intelligence company started amassing vast amounts of BTC via repeated transactions, some of which were smaller and valued at billions of dollars and became the biggest corporate holder of the most prominent cryptocurrency.

MicroStrategy’s BTC holdings increased to 129,218 BTC after the most recent disclosed purchase earlier this year. They were gathered by the organisation at an average cost of around $30,700.

Nonetheless, this implies that the Michael Saylor-led business now has an unrealized loss, since BTC has dropped in price over the previous several days and hit its lowest level since December 2020, $23,000, earlier today.

To buy all of its bitcoin assets, MicroStrategy paid slightly under $4 billion, according to simple math. Given that BTC is presently selling at $23,300, this indicates that the company’s stake is now worth around $3 billion, marking a massive unrealized loss of one billion dollars.

During the decline in mid-May, MicroStrategy warned that its $205 million debt from Silvergate would be liquidated if BTC falls below $21,062. To prevent this, however, the company is willing to pledge a greater quantity of BTC as collateral.

Saylor remains positive on BTC, forecasting a price of $1 million in the near future, despite the present crises.

MSTR Stocks Plummet

While the cryptocurrency market is now in shambles, stock markets, indices, and major organisations have also had corrections. MicroStrategy, however, is one of the most impacted companies.

As a firm with significant exposure to BTC — an asset that has declined by more than 20 percent since the last time markets opened – MicroStrategy’s stock has suffered.

Likewise, MSTR is down 20% on the day, trading at $155 as of this writing. Today, for the first time since the firm started amassing BTC, the price of the company’s shares fell below $150.

MSTR reached an all-time high, temporarily topping $1,000, at the start of the year. In spite of this, MicroStrategy’s stock has lost 85 percent of its value in less than a year and a half.

Also Read: Binance Suspends Bitcoin Withdrawals; CZ Declares Money “SAFU”