Business intelligence firm, Microstrategy, which in the last couple of years amassed a sum of 129,000 Bitcoin, which at the time of purchase was about $4 billion, has been seeing the value of their initially promising investment plummet along with their stock price. This is according to their most recent filing with the US Securities and Exchange Commission.
With CEO Michael Saylor at the helm, the company started purchasing Bitcoin with debt in mid-2020 as an investment strategy. The price of BTC has fallen a rough $22,000 since their purchase following a potential bear market plummet this month.
As of now, the total value of their BTC holdings is approximately $3 billion, summing a total loss of around $1 billion.
In spite of this, the CEO remains stoic, shrugging off earlier concerns of a potential margin call, telling reporters that they have no intention of selling their Bitcoin holdings.
Saylor has even said that they will continue to purchase Bitcoin in spite of this loss, with him being convinced Bitcoin will hit $1m in the future.
On Monday’s Wall Street trading session, crypto-based companies took a significant hit. MicroStrategy led the whole crypto stock fall, with the MSTR stock plummeting by a stunning 25%, closing Monday’s trading session at $152.
MSTR’s stock has dropped more than 72% year to date. Other publicly traded blockchain and cryptocurrency companies had their stock values collapse by 15%. Hargreaves Lansdown senior investment and markets analyst Susannah Streeter told Bloomberg:
“Crypto fans have become used to volatile rides, but these rollercoaster descents are increasingly hard to stomach. With the era of cheap money coming rapidly to an end, traders are becoming much more risk averse and turning their backs on crypto assets.”
The recent Wall Street crisis put a lot of pressure on the cryptocurrency market. The CoinShares Blockchain Global Equity Index, which tracks 49 crypto-related companies around the world, is down 38% this year, marking its worst yearly performance ever.