The month of May has proven to be brutal for one of the Crypto enthusiasts. Every investor may it be big or small seems to be anxious and looking for a recovery. Amid this crash, few giant Bitcoin (BTC) backers like Microstrategy and Tesla are holding their reserves at a large loss.
MSTR, Tesla bear market pressure
Microstrategy is the largest Bitcoin holder among publicly-listed companies. It holds 129,218 BTC with an entry value of $3.9 Billion, according to data from Coingecko. The latest value of its Bitcoin holdings stands at $3.62 Billion which is down by $343 million.
Tesla’s Bitcoin holding is also on the same page. EV giant holds 48,000 BTC at an entry value of $1.5 Billion. While its current value has shrunk down to $1.34 billion. However, Tesla’s share prices closed at $734, down by 8.25%, on the last day. Its pre market bid shows a further 2.16% fall today.
The Bitcoin is down by 12% in the last 24 hours to trade at $27,800. The last 24 hours have seen a BTC liquidation worth $425 million. This has directly affected some major players in the industry.
Earlier, Michael Saylor hinted that If BTC breaks down the $21,000 mark then the MicroStrategy will be obligated to do a margin call. The company will either have to sell its Bitcoin at a lower price or have to pull up more collateral for the loan. The software firm recently logged a big loss in Q1 2022 on the declining value of its Bitcoin holdings.
But Saylor- a Bitcoin maximalist- has staunchly opposed selling MicroStrategy’s reserves.
Bitcoin prices down by 30% in last 7 days
The BTC prices have shrunk by a massive 30% in the last 7 days leaving the whole crypto market tumbling. The global crypto market has decreased by $500 billion in the last 7 days. Meanwhile, the Bitcoin value of Microstrategy and Tesla has been reduced terribly. On the other hand, the stock prices of these giants have also suffered a lot.
Recently, the Software firm revealed a net loss for the first quarter of 2022 in its report. The MicroStrategy share prices have fallen by 25.42% in the past day to trade at $168. Meanwhile, its pre market shows a prediction of a further dump of 12.24%.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
