Every investor is concerned about the crashing cryptocurrency market. The largest bitcoin (BTC) holding institutions have experienced a similar experience. Amid the crash, public companies such as Microstrategy and EV powerhouse Tesla, which holds large amounts of BTC, have had some difficulties.
According to CoinGecko, Microstrategy and Tesla hold 129,218 and 48,000 Bitcoins respectively. It currently holds a total of 177,218 BTC. The stake of both corporations is easily greater than the total share of their respective companies in the list. However, most of these businesses are currently losing money on bitcoin.
Bitcoin has been on a downtrend since the beginning of the year. In the last 90 days, the price of BTC is down by about 27%. Major holders have suffered serious losses from this price action. The price of bitcoin has dropped to around $32,000.
Meanwhile, its 24-hour volume has increased by 83% to $83.3 billion. BTC has fallen below the cost of several businesses on the list. Bitcoin holdings of top institutions have lost more than $12 billion.
MSTC and Tesla in losses
According to the data, Microstrategy holds 0.61 percent of the total BTC supply. The company had an initial bitcoin value of $3.9 billion, and its current value is $4.11 billion. Tesla holds about 0.229 percent of the supply of bitcoin. The EV behemoth has a BTC entry cap of $1.5 billion. Meanwhile, its current market value is only $1.52 billion.
The difference between the buy and sell prices has narrowed significantly, and any additional shortfall could result in a significant loss. The holdings of the companies have plummeted as BTC has fallen by more than 50% from its ATH.
Now the question is whether these giants will sell their BTC holdings or not. MicroStrategy founder, Michael Saylor recently tweeted that the company has a $205 million term loan, with a collateral requirement of $410 million. MicroStrategy’s bitcoin holdings can be pledged. He also added that if the price of bitcoin falls below $3,600, the corporation will be able to deposit additional collateral.