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The fall of bitcoin affects Tesla and MicroSstrategy

The fall of bitcoin affects Tesla and MicroSstrategy

While bitcoin (BTC) was already showing signs of weakness (falling in price), the situation has worsened in the last few days. In fact, the king of cryptocurrencies lost a lot of value, resulting in huge losses for whales like Tesla and MicroStrategy.

Tesla loses a lot

The current price Bitcoin is about $ 26,350 according to data from CoinMarketCap. The last time BTC fell to such a low price was in December 2020. At that time, the whales had lost a lot of money due to the fall in the price of the digital asset. Unfortunately, this is still happening.

At the beginning of 2021, the company made a an investment of almost $ 1.5 billion in cryptocurrency, when the price was $ 31,260. The company subsequently sold 10% of its BTC holdings in an attempt to test liquidity. This operation allowed it to generate significant revenue of approximately $ 101 million, according to the SEC.

Even as BTC grew and its value rose in 2021, Elon Musk did not even sell some of the company’s reserves. Currently, bitcoin is priced that is 10% lower at the price the Tesla company bought its BTC stash. It should be noted that she is in her cases a total of 42,000 BTCor about $ 1.19 billion.

MicroSstrategy also loses a lot

Tesla is not the only company to be outdone by the fall in the price of BTC. Another influential company also called MicroStrategy. Since August 2020, Michel Saylor’s company has been acquired 129,218 bitcoins at an average price of $ 30,200 the room. At this price, Microstrategy’s bitcoin holdings are worth it $ 3.9 billion. But with the fall in the price of cryptocurrency, the company’s assets are now just worth it $ 3.6 billion.

Elsewhere, MicroStrategy stock also declined. At the current price of $ 148, this stock is down 11.5%. According to a report published on April 18 by Arcane Research, contrary to the maximum doctrine that bitcoin (BTC) is a store of value comparable to “digital gold”, the currency trades more like technology stock.

Due to the recent decline in the value of bitcoin (BTC), the situation is becoming more difficult for some companies, especially whales. For example, Tesla and MicroSstrategy have recorded huge losses and are not the only ones. Shares of Coinbase, PayPal and Robinhood also fell 23%, 3% and less than 1% respectively.

Source: Cointelegraph

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