As prolonged bearish sentiments are significantly affecting the number one crypto asset, Bitcoin (BTC), companies holding large volumes of BTC are wary that it could have a bearing on their quarterly report card.
Microstrategy is one such company which is holding a large number of Bitcoin. With the report for quarterly earnings shortly, investors are anxiously waiting for the report’s release,, which will be more like a statement on its crypto strategy. The company has already incurred a 50% unforeseen loss over all the investments it has made to buy Bitcoin. Last week, after months of stagnation, Bitcoin finally broke through the $20K mark and provided much relief to investors after a prolonged crypto winter.
Unrealized Loss On Microstrategy Bitcoin Investment
However, the present value of Bitcoin is far below the prices last year when Bitcoin (BTC) was on a dream bull run. The prolonged bearish winter afflicting the crypto sector has left a large section of Bitcoin investors badly bruised,. The same can be said for the companies like Microstrategy Bitcoin Investments.
For a significant part of 2022, Microstrategy Bitcoin holding followed a sideways path and suffered a 50% loss over its investment. However, it is relieving to know that the losses are small when compared to the strategy of investing in BTC in the long term. The company reported a loss of over $1 billion in the second quarter of 2022 as the BTC price dropped significantly.
Microstrategy, which Michael Saylor led, had embarked on long-term Bitcoin investments, and the same strategy is being followed by the company even today. It is continuing to purchase BTC, especially when today its values have been bottoming out. Microstrategy is the primary institutional Bitcoin holder behind Marathon Digital and Tesla. Elon Musk-led Tesla has a Bitcoin balance of 9,720 currently.