In the current bear market, the two top rich Bitcoin enthusiasts public companies, Michael Saylor led Microstrategy and Elon Musk led Tesla have a combined loss of around $1.4 billion in their Bitcoin (BTC) investments. Microstrategy has purchased around 129,218 Bitcoins and Tesla has invested in around 43,200 Bitcoins. Because both firms are publicly listed, the July quarterly reports will reveal how much each company is losing on its Bitcoin assets.
Bitcoin investment from Michael Saylor led Microstrategy
Michael Saylor who is the cofounder of Microstrategy had spent over $4 billion buying 129,218 BTC for the company. With this investment, the company has ownership of approximately 0.615% of the entire supply of 21 million bitcoin. The BTC investment of the company is currently worth $3.1 billion. It shows a significant loss of $900 million. Furthermore, in premarket activity on Monday, Microstrategy stock (MSTR) plummeted to its lowest levels in months.
Bitcoin investment from Tesla
Tesla has invested $1.5 billion for 43,200 BTC during the 2021 bull market, or 0.206% of the entire Bitcoin supply. Currently, Elon Musk’s $1 billion profit in those BTC has been evaporated. With the current market fall, the investment of Tesla is now worth only $1 billion with a drop of about $500 million.
Analysis of current market for big rich Bitcoin enthusiasts
Bitcoin briefly topped Tesla’s market valuation in November of last year. Tesla’s market cap is currently about $721 billion, while Bitcoin is worth less than $500 billion. Similarly, the whole crypto market value is declining, falling below $1 trillion with bitcoin getting near to its December 2020 level.
Microstrategy’s situation is significantly worse. If the price of Bitcoin outperforms and falls below $21,000, Saylor will be compelled to provide additional bitcoin to guarantee a $205 million loan. Saylor had already reconciled with investors, informing them that the $205 millions loan it had obtained required $410 millions in security.
little reminder that Saylor needs to add collateral around $21k $BTC
snippet from Q1 earnings: pic.twitter.com/OM7haXSk6A
— yeezus 幸栄 (@yeezuscapital) June 13, 2022
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