{"id":29736,"date":"2022-06-13T07:25:55","date_gmt":"2022-06-13T11:25:55","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29736"},"modified":"2022-06-13T07:26:08","modified_gmt":"2022-06-13T11:26:08","slug":"microstrategy-investment-loses-bitcoin-worth-of-713-million","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/microstrategy-investment-loses-bitcoin-worth-of-713-million\/","title":{"rendered":"Microstrategy Investment Loses Bitcoin Worth Of $713 Million"},"content":{"rendered":"\n
Microstrategy's investment loss widens as Bitcoin<\/a> price falls below $25,000 in the last 24 hours.<\/h5>\n\n\n\n
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Microstrategy's Bitcoin (BTC<\/a>) holding has lost $713 million, or 18%, as the BTC price has fallen below $25k in the last 24 hours. The company, led by Bitcoin evangelist Michael Saylor, hasn't sold any of its Bitcoin yet, but it faces a margin call if the price of Bitcoin falls below $21,000.<\/p>\n\n\n\n

MicroStrategy's CFO Phone Le previously stated that if a margin call was issued, the company would have to either put up more collateral for the loan or sell some of its bitcoin holdings.<\/p>\n\n\n\n

MicroStrategy has 129,218 BTCs\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> worth nearly $3.97 billion at an average price of $30,700. However, the value has dropped to $3.25 billion after the price of Bitcoin (BTC) fell below $25k today. Several factors contribute to the possibility of a drop to $21k. Rising inflation, a market-wide selloff in response to pressure, the stETH-ETH depeg, and other factors are causing the BTC price to fall.<\/p>\n\n\n\n

MicroStrategy borrowed billions of dollars to purchase Bitcoin. Recently, the company obtained a $205 million bitcoin-collateralized loan from Silvergate Bato to purchase more bitcoins. If the price of Bitcoin reaches $21,000, the company will be in a bad situation. Investors are concerned about the company's billions of dollars in debt, its slowing software business, and its exposure to an extremely volatile asset.<\/p>\n\n\n\n

The firm's stock price has dropped 64% in 2022, with the price currently trading at $203.36. As a result, MicroStrategy's underlying software business is insufficiently profitable to service that debt.<\/p>\n\n\n\n

However, MicroStrategy CEO Michael Saylor is bullish on Bitcoin's future, praising it as a store of value and inflation hedge. Saylor has no plans to sell his Bitcoin holdings.<\/p>\n\n\n\n

Bitcoin's (BTC) price has dropped about 13% in the last 24 hours, with the current price trading at $24,200. It has also dropped 25% in the last seven days. It shows that the likelihood of additional decline is fairly significant as whales and institutional investors continue to dump their Bitcoin holdings.<\/p>\n\n\n\n

Investors in MicroStrategy may be anticipating a margin call as the company's financial risk rises. The sale of MicroStrategy's Bitcoin holdings will have a significant impact on the already faltering crypto market<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Microstrategy’s investment loss widens as Bitcoin price falls below $25,000 in the last 24 hours. Microstrategy’s Bitcoin (BTC) holding has lost $713 million, or 18%, as the BTC price has fallen below $25k in the last 24 hours. The company, led by Bitcoin evangelist Michael Saylor, hasn’t sold any of its Bitcoin yet, but it […]<\/p>\n","protected":false},"author":33,"featured_media":29740,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[834],"tags":[],"class_list":["post-29736","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-binance"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/268_v2-1.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29736"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29740"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}