How Much Are MicroStrategy And El Salvador Losing?
With the overall market continuing to strongly dump earlier this week, all focus is on the Bitcoin investments of prominent industry “whales” as the magnitude of their losses could have devastating consequences for future utopia for BTC price. Two prominent names mentioned are MicroStrategy and El Salvador.
MicroStrategy lost more than half a billion dollars
Despite rumors of “underselling” Bitcoin to get out of the market during the recession in April 2022, up to now, MicroStrategy’s BTC quantity has remained the same with 129,218 Bitcoins, the same average purchase price average is $30,700.
Before the movements of Bitcoin and Ethereum, both set a new low of 2022 due to the heavy impact of the LUNA-UST crisis in early May 2022 combined with Ethereum’s negative chain of events at the beginning of the week related to the “chain effect” stETH of Lido, Alameda and Celsius and a series of serious disruptions of the DeFi space, MicroStrategy is stuck again.
At the time of writing, MicroStrategy had a loss of $895.9 million, which corresponds to a BTC asset that has evaporated 22.59% of the total value of the company’s initial investment.
However, in the latest interview that took place about a week ago, MicroStrategy CEO Michael Saylor confidently stated that Bitcoin’s short-term downturn is not a “problem” too big for the company. company. He even affirmed that MicroStrategy will not sell Bitcoin despite the risk of liquidation of the mortgage loan in BTC.
El Salvador is at an impasse
El Salvador made history on September 7th as the first country to adopt Bitcoin as a legal currency. This move has been vehemently opposed by a number of world organizations. These include the International Monetary Fund (IMF), the World Bank, and the Bank of England.
Despite all these criticisms, President Nayib Bukele remains firmly in favor of Bitcoin. Since September 2021, the President has been public on his personal page about the country’s cases of taking advantage of the reduced price of Bitcoin.
However, similar to the situation of MicroStrategy as well as a number of other prominent giants such as Tesla and Block, El Salvador’s 2,301 Bitcoin holdings were not spared from “tragedy”, even loss in percentage terms hundred is the largest of the companies just mentioned, amounting to more than 48% (loss of $50.8 million). Meanwhile, Tesla (20.37% loss – $270 million with 42,000 Bitcoin) and Block (8.13% loss – $17 million with 8,027 Bitcoin).
However, the case of El Salvador is considered to be much more dangerous than MicroStrategy because the level of influence will cover the national scale, not simply in terms of companies or organizations.
Not only that, El Salvador is too focused on “bottoming” BTC bluff and the campaign to issue $1 billion worth of Bitcoin bonds, which have not been able to launch as scheduled, without focusing on solving the problem. The resolution of domestic economic problems has raised concerns among El Salvadorans and the international community that El Salvador may default on $800 million worth of bonds due in January 2023.
And if this happens, it is highly likely that the El Salvador government will “discharge” the Bitcoin in its reserves to save the situation. The consequences will create a very bad precedent for the entire cryptocurrency industry where the trust of the authorities as well as individuals and organizations that are new to the market because El Salvador is considered a pioneer country to adopt Bitcoin as a currency.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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How Much Are MicroStrategy And El Salvador Losing?
With the overall market continuing to strongly dump earlier this week, all focus is on the Bitcoin investments of prominent industry “whales” as the magnitude of their losses could have devastating consequences for future utopia for BTC price. Two prominent names mentioned are MicroStrategy and El Salvador.
MicroStrategy lost more than half a billion dollars
Despite rumors of “underselling” Bitcoin to get out of the market during the recession in April 2022, up to now, MicroStrategy’s BTC quantity has remained the same with 129,218 Bitcoins, the same average purchase price average is $30,700.
Before the movements of Bitcoin and Ethereum, both set a new low of 2022 due to the heavy impact of the LUNA-UST crisis in early May 2022 combined with Ethereum’s negative chain of events at the beginning of the week related to the “chain effect” stETH of Lido, Alameda and Celsius and a series of serious disruptions of the DeFi space, MicroStrategy is stuck again.
At the time of writing, MicroStrategy had a loss of $895.9 million, which corresponds to a BTC asset that has evaporated 22.59% of the total value of the company’s initial investment.
However, in the latest interview that took place about a week ago, MicroStrategy CEO Michael Saylor confidently stated that Bitcoin’s short-term downturn is not a “problem” too big for the company. company. He even affirmed that MicroStrategy will not sell Bitcoin despite the risk of liquidation of the mortgage loan in BTC.
El Salvador is at an impasse
El Salvador made history on September 7th as the first country to adopt Bitcoin as a legal currency. This move has been vehemently opposed by a number of world organizations. These include the International Monetary Fund (IMF), the World Bank, and the Bank of England.
Despite all these criticisms, President Nayib Bukele remains firmly in favor of Bitcoin. Since September 2021, the President has been public on his personal page about the country’s cases of taking advantage of the reduced price of Bitcoin.
However, similar to the situation of MicroStrategy as well as a number of other prominent giants such as Tesla and Block, El Salvador’s 2,301 Bitcoin holdings were not spared from “tragedy”, even loss in percentage terms hundred is the largest of the companies just mentioned, amounting to more than 48% (loss of $50.8 million). Meanwhile, Tesla (20.37% loss – $270 million with 42,000 Bitcoin) and Block (8.13% loss – $17 million with 8,027 Bitcoin).
However, the case of El Salvador is considered to be much more dangerous than MicroStrategy because the level of influence will cover the national scale, not simply in terms of companies or organizations.
Not only that, El Salvador is too focused on “bottoming” BTC bluff and the campaign to issue $1 billion worth of Bitcoin bonds, which have not been able to launch as scheduled, without focusing on solving the problem. The resolution of domestic economic problems has raised concerns among El Salvadorans and the international community that El Salvador may default on $800 million worth of bonds due in January 2023.
And if this happens, it is highly likely that the El Salvador government will “discharge” the Bitcoin in its reserves to save the situation. The consequences will create a very bad precedent for the entire cryptocurrency industry where the trust of the authorities as well as individuals and organizations that are new to the market because El Salvador is considered a pioneer country to adopt Bitcoin as a currency.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
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