Bitcoin falls to its lowest level since late 2020 amid broad market sell-off
MicroStrategy (MSTR) shares tumbled on Monday as the stock fell nearly 76% from its November peak. Cryptocurrency-related stocks fell sharply in premarket trading on Monday, as bitcoin plunged to its lowest level since the end of 2020, with crypto lending platform Celsius suspending withdrawals amid a broader market sell-off.
MicroStrategy Inc., which has acquired more than 129,000 bitcoins over the past two years, led the decline, falling 23%. Other crypto equities such as Marathon Digital Holdings Inc., Riot Blockchain Inc. and Coinbase Global Inc. All have declined by at least 14%.
An increase in rates in May, a possible recession and the possibility of the Terra ecosystem to explode strongly influenced market sentiment, and crypto equities have been under pressure for months. The CoinShares Blockchain Global Equity Index, which includes 49 companies with worldwide crypto exposure, has lost more than 37% so far this year, putting it on track for its worst annual performance on record.
Microstrategy Loses $1.04 Billion After Crypto Market Route
MicroStrategy, Tesla, and El Salvador held 129,218, 42,902 and 2,301 bitcoins; Cost prices were US$31,600, US$30,700 and US$43,900; Losses reached approximately US$1.04 billion, US$310 million and $47 million. https://t.co/qzRq3Xykvo
— Wu Blockchain (@WuBlockchain) 13 June 2022
as reported by Colin Wu, MicroStrategy, Tesla and El Salvador held 129,218; 42,902 and 2,301 bitcoins, respectively, at a price of $31,600; $30,700 and $43,900 each. Estimated losses for MicroStrategy reached approximately $1.04 billion, while losses for Tesla and El Salvador were $310 million and $47 million, respectively.
Bitcoin traded at a low of $22,611 on June 13th after a weekend round. In May, Microstrategy’s CFO, Phone Le, cited the company’s ability to receive margin calls on its huge BTC position at $21,000.
In March, Microstrategy took out a $205 million bitcoin-collateralized loan with Silvergate Bank to buy more bitcoin. According to MicroStrategy CEO Michael Sayler, bitcoin may need to drop more than $3,562 to post more collateral for its $205 million loan.