Every investor is concerned about the crashing cryptocurrency market. The largest Bitcoin (BTC) holding institutions have experienced the same thing. In the midst of the crash, public companies like Microstrategy and EV powerhouse Tesla, which owns a large amount of BTC, have had some difficulties.
Microstrategy and Tesla, according to CoinGecko, have 129,218 and 48,000 Bitcoin respectively. He currently has a total of 177,218 BTC in his possession. The holdings of both companies are easily greater than the total holdings of their respective companies on the list. However, the majority of these companies are currently losing money on Bitcoin.
Since the beginning of the year, Bitcoin has been on the down. In the last 90 days, the price of BTC has dropped by almost 27%. The major holders have been severely harmed by this price action. The price of Bitcoin has dropped to around $32,000.
Meanwhile, its 24-hour volume rose 83% to $83.3 billion. BTC fell below the cost of several of the companies on the list. Major institutions’ Bitcoin holdings lost over $12 billion.
MSTC and Tesla in loss
Microstrategy owns 0.61 percent of the total BTC supply, according to the data. The company’s initial Bitcoin worth was $3.9 billion, and its current value is $4.11 billion. Around 0.229 percent of the Bitcoin supply is held by Tesla. The EV behemoth’s BTC entry value is $1.5 billion. Meanwhile, its current market worth is only $1.52 billion.
The spread between the buy and sell prices has narrowed significantly and any further declines could result in a large loss. Corporate holdings declined as BTC plunged more than 50% against its ATH.
The question now is whether or not these behemoths will sell their BTC holdings. MicroStrategy’s founder, Michael Saylor, recently tweeted that the company has a $205 million term loan with a $410 million collateral requirement. MicroStrategy’s Bitcoin holdings can be pledged. He also stated that if Bitcoin’s price falls below $3,600, the corporation will be able to deposit additional collateral.
