Microstrategy Stocks Drop 20% Daily With Positions Being Down $1B

The Microstrategy stocks drop 20% daily with the BTC positions of the company being down $1 billion with the recent decline in both stocks and crypto markets, harming the share prices of the company so let’s read more today in our latest Bitcoin news.

Microstrategy is the biggest corporate BTC holder and it is in the red for its BTC position. The company’s stocks went on a freefall today with a double-digit price crash leading to a multi-year low. What started in 2020 after the COVID pandemic broke out, became a crypto phenomenon. The US intelligence company started gathering huge portions of BTC with frequent purchases, some billions some worth smaller, and became the biggest corporate holder of the main cryptocurrency.

With the latest purchase earlier this year, Microstrategy’s BTC holdings are now 129,218, and the company accumulated them at an average price of $30,700. however, this means that the company sits in an unrealized loss since BTC crashed in the past few days and dumped to its lowest point since December 2020. Microstrategy spent under $4 billion to acquire its BTC holdings and now BTC trades at $23,000 which means that the company’s position is worth around $3 billion as an unrealized loss of a billion dollars.

The Microstrategy stocks drop 20% and warned that if BTC drops to $21,062, the $205 million loans from silvergate will get liquidated. However, the company is prepared to use more of its coins as collateral. Despite the crisis, Saylor remained bullish on BTC and predicted a $1 million price tag in the near future. While the market is in shambles, the stock market, indexes, and large corporations as some corrections. One of the worst affected was still Microstrategy. Being a company with huge exposure to BTC, the asset that is down by 20% since the last time the markets were opened, the stock felt the adverse effect.

MSTR is down 20% on the day and now trades at $155 so the shares even crashed below $150 for the first time since the company started acquiring BTC. The stocks tapped an ATH last year meaning that the stocks are now down by 85% in under a year and a half.

As recently reported, BTC evangelist and Microstrategy CEO Michael Saylor announced that Microstrategy will offer BTC retirement plans for its employees and will be able to invest in crypto as a part of 401K savings accounts. The announcement came as Fidelity investmetns rolled out the Digital Asset Account giving companies access to BTC. Microstrategy will work with Fidelity and will allow employees to add BTC to their retirement funds. The 401K account allows employees to get a tax break on the money that they contribute from their salary to a retirement plan.