Down Bad! Institutional Bitcoin Holdings Drop by $12B Amid Bloodbath

Following a recent announcement of rate hikes by the US Fed and the ongoing bloodbath in the crypto market, the total amount of bitcoin held by large corporations has dropped by $12 billion.

Institutional Bitcoin Holdings Sees $12B Drop

According to recent data, a total of 43 companies currently hold over 1.2 million BTC, with digital asset manager Grayscale Investments holding the lion’s share of about 655k BTC, worth about $20.8 billion. 

Private blockchain company and EOSIO developer Block.one holds the second largest Bitcoin stash with 164k BTC in its portfolio valued at $5.2 billion.

Leading business intelligence software company MicroStrategy holds the third largest Bitcoin stash and currently owns 129,218 BTC, which was valued  at $5.9 billion at the time of the most recent purchase. However, under the current market prices, MicroStrategy’s BTC stash is worth about $4 billion, representing a 33% drop. 

Electric car company Tesla now holds a total of 43,200 BTC since its last purchase in February 2021. According to today’s price, the aggregated sum of Bitcoin held is equivalent to over $1.3 billion. 

Overall, the value of bitcoins held by companies and institutions has dropped by more than $12 billion. 

Bitcoin Gets Oversold

While the general crypto market has been experiencing a significant decrease over the past few days, Bitcoin suffered heavily due to the actions of Luna Foundation Guard (LFG), the non-profit behind the Terra (LUNA) blockchain project. 

According to an earlier report, LFG sold $2.2 billion worth of BTC in an effort to keep its TerraUSD pegged to $1, which resulted in a huge drop in the price of bitcoin. At the time of writing, the leading cryptocurrency was trading at $31,000. 

MicroStrategy to Get Margin Call?

Meanwhile, the bearish market has forced speculators into thinking that MicroStrategy would face a margin call at $21,000 if the bloodbath continues considering the recent BTC-collaterized loan taken by the company. 

However, MicroStrategy CEO Michael Saylor noted that the bitcoin must drop to at least $3,562 before the company would face a margin call to refill its leverage position on its collaterized loan.