MicroStrategy Now Down $1B on Its Bitcoin Bet

Bitcoin has extended its plunge to a fresh 18-month low, below $23,000.

AccessTimeIconJun 13, 2022 at 2:49 p.m. UTC
Updated May 11, 2023 at 6:54 p.m. UTC

Michael Saylor's MicroStrategy (MSTR) is sitting on an unrealized loss of more than $1 billion on its bitcoin (BTC) holdings as the price of the largest crypto by market value touches $22,900 in Monday trading.

  • The CEO of the technology company began purchasing bitcoin in August 2020 at a price just under $12,000. Subsequent purchases over the following months brought the company's holdings to 129,918 bitcoin, now valued at under $3 billion, compared with what's a near-$4 billion investment.
  • Much of the funding of MSTR's buys came via junk bond and convertible note sales.
  • Last month, Saylor dismissed talks of a margin call, stating that a problem would occur only if bitcoin reached $3,562.
  • MicroStrategy shares are down 24.32% on Monday as it leads the sell-off in crypto-related stocks.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about