MSTR and Tesla Near BTC loss! How are Institutions Dealing With Crypto Crash?

The post MSTR and Tesla Near BTC loss! How are Institutions Dealing With Crypto Crash? appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

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 Bitcoins, respectively. It currently has a total of 177,218 BTCs in its possession. Both corporations’ stakes are easily greater than their respective companies’ total holdings on the list. However, the majority of these businesses 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.

In the meantime, its 24-hour volume has increased by 83% to $83.3 billion. BTC has dropped below the cost of several of the businesses on the list. The top institutions’ Bitcoin holdings have 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 difference between the purchasing and selling prices has narrowed considerably, and any additional decrease could result in a significant loss. Companies’ holdings have diminished as the BTC has plunged over 50% from 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. 

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