The dramatic drop in the price of bitcoin (quotation BTC) on Monday 13 June could not go unnoticed by one of the companies that has focused more on cryptocurrencies in recent times: MicroStrategy.
Losses of nearly $ 1 billion!
Bitcoin's momentum in the market translates into unrealized losses in the millions. Losses amount to about $ 1 billion for the company led by Michael Saylor, which owns 129.218 bitcoins purchased at an average price of about $ 30.700 per unit. Now, with the cryptocurrency hovering around $ 23.000, the company's BTC fund is taking a hit.
In total, MicroStrategy's BTC holdings have a base price of just under $ 4 billion. At the moment, with the price of the cryptocurrency hovering around $ 23,2 billion, the company's fund is just under $ 3 billion.
According to company reports, around 19.466 BTC of its fund currently serves as collateral for a $ 205 million loan managed by Silvergate Bank. To maintain the loan, the collateral must remain above $ 410 million (double the amount borrowed). At the moment, the bitcoin figure is over $ 450 million, so capital doesn't seem to be at risk yet.
Indeed, in his report for the end of the first quarter of this year, Michael Saylor commented via Twitter that, in any case, the company had nearly 120.000 BTC more to secure its loan. The cryptocurrency would have to drop to $ 3.562 in market value to be forced to add more collateral, he argued at the time.
MicroStrategy Shares Down More Than 25%
MicroStrategy is the publicly traded company with the most BTC, closely followed by Tesla, which does not even reach 45.000 bitcoins, according to data from bitcointreasuries.net.
In addition to the fall of bitcoin, MicroStrategy also has to deal with the decline in the value of its shares. During trading on Monday, shares of business intelligence firm MSTR fell more than 25%, according to data from Investing. MSTR shares closed at $ 152,15 on Monday, after breaking above $ 200 on Friday.