Bitcoin Holdings of MicroStrategy Take Record $3.4 Billion Hit

    Bloomberg News reported when MicroStrategy Inc started to buy Bitcoin in bulk in the summer of 2020, Michael Saylor, the chief executive officer, stated that it was because inflation would cause the cash to become worthless. The crypto pile accumulated since is worth $3.4 billion less towards the second quarter-end compared to the earlier one.




    More on It

    The drop is technically another paper loss under the US accounting rules for the enterprise software maker until the sale of any of the Bitcoin is sold. When it reports the results of the second quarter, it will require to take a substantial impairment charge. The stock slid 66% on Thursday when the quarter ended.

    Saylor did not express much concern and continued to stick to the strategy adding to his last quarter’s stockpile as Bitcoin was experiencing the largest drop in price in more than 10 years. Bitcoin stash of MicroStrategy was worth approximately $5.9 billion towards the first quarter-end. It means that with Bitcoin finishing at about $18,900 on June 30th, the same pile, including some smaller purchases announced at June end, was worth approximately $2.45 billion, or about 59% less than what it was just 90 days ago.

    Bloomberg News also reports that at the peak of the collapse of the crypto market, MicroStrategy bought about 480 Bitcoin worth $20,817 each. This was found out as per a filing of the company with the US Securities and Exchange Commission on Wednesday.

    While some crypto-centric firms have included Bitcoin into their balance sheets, the blow many coins and many digital assets are facing in the prevailing bear market will compel any new participant in the crypto market to think twice before taking the plunge.

    However, few participants still appear to worry less about the recent price drop and Saylor’s strategy.

    Mark Palmer, who is associated with BTIG as the digital assets research head, stated that if their price target on MicroStrategy is seen, it is based on Bitcoin price reaching the $95,000 mark by the end of 2024. It may be mentioned that BTIG has a buy rating related to MicroStrategy with a target cost of $950.

    Shares of MicroStrategy were found, ending the second quarter at $164.30. The stock surged as high as $1,272.94, as was seen in February 2021. It was found trading at $123.02 towards July 2020, just before Saylor started to purchase the Bitcoin.

    Palmer also said that since there is a deterministic supply related to Bitcoin, only 21 million Bitcoins will be ever mined. He also revealed that this state of affairs means that Bitcoin price will be determined by demand, not supply-demand balance.



    RELATED ARTICLES

    Crypto30x.com Ocean

    Crypto30x.Com Ocean 2025: Smart Trading Made Simple

    In the swiftly evolving global of blockchain and decentralized finance (DeFi), Crypto30x.com Ocean emerges as...
    xrp price prediction 2030

    XRP Price Prediction 2030: Charting a Course Through Uncertainty

    Figuring out the xrp price prediction 2030? It’s a real puzzle. You've got all these...
    crypto30x.com tnt

    Crypto30x.com TNT: Unleash the Power of 30x Leverage!

    Feeling stuck with minimal crypto gains? Tired of watching small market movements yield insignificant profits?...
    Crypto30x.com

    Crypto30x.com: The Forthcoming of Digital Asset Investments

    The dynamic and evolving cosmos of virtual finance is actually global. Within this area, the...
    mutual fund

    Investing your annual bonus as a lumpsum? A calculator can help you make a thoughtful start to FY26

    As the new financial year kicks off, many salaried individuals are receiving their annual bonus....
    CoinWatch

    What Is CoinWatch? A New Way to Track and Analyze Crypto Markets

    With the crypto market getting stronger by the day, traders and investors need more than...
    how to start cloud kitchen from home

    How to Start Cloud Kitchen from Home With No Experience

    Ever stand in your kitchen, whipping up something amazing, and think, “People would pay for...
    Jojoy GTA 5

    Jojoy GTA 5 Download: How to Get Started Safely

    In the world of open-global gaming, Grand Theft Auto V (GTA 5) stands tall as...
    agents

    Letting Agents: The Middleman in the Chain of Tenancy

    The UK rentals sector is faster, more aggressive, and more complex—so letting agent role more...
    beauty tips - well health organic.com

    Beauty Tips – Well Health Organic.com: Unlock Radiant Skin with Home Remedies

    Ever look in the mirror and wish for that healthy, natural glow? Does the thought...
    Eehhaaa login

    Eehhaaa Login: A Full-Fledged Guide to the Website

    In these days’ virtual age, revolutionary structures are reshaping how users interaction with content material...