Bitcoin experienced a sharp decline on Tuesday, sending shockwaves through the investment world, particularly impacting the portfolios of major corporate players. This plunge left a noticeable dent in the holdings of companies like MicroStrategy, Marathon Digital, and Tesla, all of whom have made significant investments in the leading cryptocurrency.
MicroStrategy, a company renowned for its early and aggressive adoption of Bitcoin, currently holds a substantial reserve of 226,500 BTC. Following a 5.4% drop in Bitcoin’s value over the last 24 hours, the cryptocurrency fell to $59,651, diminishing the market value of MicroStrategy’s Bitcoin stash to $13.48 billion. This translates to an unrealized loss of nearly $770 million for the company over the past day.
Marathon Digital Holdings, the second-largest corporate Bitcoin holder, owns 25,000 BTCs, which are now worth $1.49 billion. This represents a decrease of $90 million in the last 24 hours. Similarly, Tesla, the electric vehicle giant, is estimated to hold 9,720 Bitcoins on its balance sheet, currently valued at $579 million. The recent price drop has resulted in a $33 million loss for Tesla on its Bitcoin investment.
It’s important to note that these losses are calculated based on the 24-hour price change and do not reflect the original purchase price of the Bitcoin holdings. The significant decline in Bitcoin’s price can be attributed to the liquidation of overleveraged bullish bets made on derivatives exchanges, according to analytics firm Santiment. This price action caused Bitcoin to reach an intraday low of $58,116, its lowest point in over a week.
The impact of this Bitcoin downturn was also evident in the stock market. MicroStrategy’s shares closed 4.69% lower on Tuesday, while Tesla’s stock slid 1.88%, and Marathon Digital shares plunged 4.36%. The recent volatility in the cryptocurrency market highlights the inherent risk associated with Bitcoin investments, particularly for large institutional investors.