- It’s time that we find out the consequences of Billionaire Elon Musk and Micheal Saylor’s big bets on BTC.
- Their risky investments proved to be fruitful in 2021. However, this year things can turn sour with the ongoing bearish trend.
- The data from CoinGecko reveals that the crypto market is currently valued at just $900 billion.
Microstrategy’s Michael Saylor and Tesla CEO Elon Musk long shooted at the top coin. Their risky bet seems to have paid in 2021. However, things might turn upside down this year. The cryptocurrency market has lost over $2 trillion since its historical record of $3 trillion last November. The data from CoinGecko reveals the crypto market is valued at $900 billion currently. Cryptocurrencies are going through a rough patch. Almost all cryptocurrencies have decreased in their value. During these turbulent times, investors tend to eliminate riskier assets from their portfolio.
Prominent lenders too were heavily affected. Three Arrows capital that had assets worth billions of dollars went bankrupt. 3AC invested in LUNA which had a melodramatic meltdown in early May. Leading cryptocurrency BItcoin has declined by a whopping 72% from its ATH. While the top altcoin has dropped by 79%. The price decrease simply means BTC purchased before the crisis have drastically lost their value now.
Fluctuations In BTC Result In MicroStrategy Shares
Prominent Firms Tesla and Microstrategy will be at the center of focus as this crypto winter intensifies. Tesla publishes its second-quarter results on July 20. While Microstrategy must report its quarterly results between the end of July and August- start. Elon Musk’s group announced in February 2021 that it had purchased 43,200 BTCs worth $1.5 billion at that time. When last checked Tesla’s BTC portfolio had come down to just $829 million. Recently, Musk showed support to its favorite coin Dogecoin saying that it will continue to buy the asset. However, he did not comment on Bitcoin.
On the other hand, it will also be interesting to see the results of Microstrategy. The software producer firm holds the most BTCs. As per the SEC’s recent filing, there are 129,699 bitcoins in the balance sheet. Out of which, 48 were purchased between May 3 and June 28. $3.98 billion is the total acquisition price. The value of these BTCs has gone down by approx. $1.5 billion. And currently is valued at $2.49 billion. The fluctuations in BTC is reflected in the group’s stock performance substantially. Since the start of May,
MicroStrategy shares have lost 46% of their value when the crypto winter started to deepen.
Source: https://www.thecoinrepublic.com/2022/07/14/big-bitcoin-betters-elon-musk-tesla-and-microstrategy-face-turbulent-times/