Tesla and Microstrategy lose $1.5 bn together on BTC holdings
Michael Sayor's Microstrategy and Elon Musk's Tesla are facing hefty losses as a result of their investments in Bitcoin
Two of the largest bag holders of Bitcoin, namely Tesla and Microstrategy, are facing losses of approximately $1.5 billion on their large Bitcoin purchases.
Elon Musk, the CEO of Tesla, acquired over 40,000 Bitcoins for his car firm, expecting a profit of about $1 billion from the bull market. This led to a fall of about $500 million in the value of 43,200 Bitcoins, which cost about $1.5 billion initially and equals 0.206 per cent of the entire supply of the 21 million bitcoins in circulation.
Microstrategy CEO Michael Saylor paid an amount of $3,965,863,653, i.e., approximately $4 billion for 129,218 bitcoins. This accounts for about 0.615 percent of the total Bitcoins in circulation. The investment’s worth has gone down to $3.1 billion. This means a loss equivalent to $900 million. Microstrategy stocks fell to an all-time low during the pre-market session this Monday.
These publicly traded companies have lost a hefty $1.4 billion on their Bitcoin investments. The July quarterly results will show the actual losses in Bitcoin assets between each of the two billionaires.