MicroStrategy’s massive bet on bitcoin is in the red after the cryptocurrency’s price fell below the software company’s average purchase price.
MicroStrategy and its entities currently hold 129,218 bitcoins, bought at an average price of $30,700. The current bitcoin price is around $28,200, which translates to a paper loss of $330 million — although MicroStrategy hasn’t realized the loss by selling any bitcoin.
Amid broader market fallout, MicroStrategy’s stock price has also declined sharply over the past few days. It closed at $168 on Wednesday, bringing the decline this week to 45%.
Microstrategy and its CEO Michael Saylor have become poster children for bitcoin enthusiasm after going all in on the cryptocurrency. MicroStrategy first purchased bitcoin on its balance sheet in August 2020, when Saylor told The Block that bitcoin is a superior asset for a treasury given it is deflationary by design.
“Gold is defective in the 21st century,” he said at the time. “It b
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