Tesla, MicroStrategy, Block’s bet on Bitcoin leads to $5B loss on books in Q2
Betting on Tesla, MicroStrategy, and Block’s Bitcoin (BTC) resulted in a total loss of $ 5 billion in books in the second quarter. Bloomberg News report July 22.
According to the report, Bitcoin’s 59% decline during the quarter caused tremendous losses to these companies based on previous holding disclosures.
Micro Strategy
MicroStrategy spent about $ 4 billion on the purchase of 129,699 Bitcoin, accounting for 70% of the $ 5 billion loss. Business intelligence companies are estimated to lose approximately $ 3.4 billion.
But it didn’t discourage the company from keeping its CEO Michael Saylor holding BTC. The last purchase of MicroStrategy was $ 10 million worth of BTC on June 29th.
Tesla
Tesla said on July 20 that it sold 75% of Bitcoin’s holdings for $ 936 million at an average selling price of $ 29,714 per BTC.
Meanwhile, Tesla has revealed that Bitcoin’s impairment loss is affecting profitability.
Despite the loss, Elon Musk hinted that electric car makers are ready to buy more Bitcoin in the future and that the sale of the company should not be considered a “verdict” of the asset.
Block Inc
Block Inc., led by Jack Dorsey, owned $ 336 million in Bitcoin on March 31st. Coingecko data The stash has now shown to be worth about $ 190 million — a loss of $ 146 million in the second quarter.
This loss does not appear to postpone Dorsey, who continues Bitcoin’s evangelization. Twitter founder recently Alliance In collaboration with Jay-Z, we have established an educational program tagged with the Bitcoin Academy to raise awareness about cryptography in disadvantaged areas.
Expert opinion
Losses have shown the risk of companies buying volatile assets like Bitcoin, according to experts spoken to Bloomberg.
Matt Maley added that companies holding coins may want to sell if their assets fall even further.
..@ Tesla sale #BTC Great news for @ Bitcoin!!First, the market no longer has to worry @ Tesla sale #BTC It has plagued us for a long time. The second, @ Tesla Sales worth nearly US $ 1 billion #BTC Shows the liquidity of @ Bitcoin For all big companies.
— HEJustinSun 🌞🇬🇩 (@justinsuntron) July 21, 2022
But for crypto enthusiasts like Justin Sun, Tesla’s ability to sell about $ 1 billion worth of coins shows market liquidity, and in the future “bigger companies” will buy assets. He said he was expecting that.
