Will MicroStrategy, Tesla Sell Their Bitcoins To Avoid Loss?

The Crashing Cryptocurrency market has left every investor worried. The same has happened with the biggest Bitcoin (BTC) holding institutions in the market. Public companies like Microstrategy and EV giant Tesla which owns a huge amount of BTC have also faced some troubles amid the dump.

MSTR and Tesla hold over 177K BTCs

According to CoinGecko, Microstrategy and Tesla hold 129,218 and 48,000 Bitcoins respectively. It makes a cumulative holding of 177,218 BTCs at the moment. Both Companies holding is easily more than the total holdings of respective companies on the list. However, most of these companies are now holding Bitcoin at a huge loss.

Bitcoin is on a downfall since the beginning of the year. BTC’s price has plunged by over 27% in the past 90 days. This price action has caused huge trouble for its major holders. The BTC’s price has come down to trade on the $32,000 price level. Meanwhile, its 24 hour volume has surged by 84% to $83.3 billion. BTC’s decline has gone below the cost price of the many businesses on the list. Over $12 Billion has gone from the Bitcoin’s holding of the top institutions.

MSTR and Tesla near BTC loss

As per the data, Microstrategy owns 0.61% of the total BTC supply. The company has a Bitcoin entry value of $3.9 Billion while its latest value stands at $4.11 Billion. Tesla is holding around 0.229% of the Bitcoins supply. While the EV giant has a BTC entry value of $1.5 billion. Meanwhile, its recent value stands at just $1.52 Billion.

The margin between the buying and selling price has come quite close and further decline can lead to a heavy loss. As the BTC dropped over 50% from its ATH, companies’ holdings have also shrunk.

A huge question that arises here is will these giants sell their BTC holdings. In the latest tweet, Michael Saylor, Founder of MicroStrategy, informed that the company has a $205 million term loan and they have to maintain $410 million as collateral. MicroStrategy can pledge its BTC holdings. He added that if the Bitcoins price goes down to the $3,600 level then the company can post some other collateral.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.