The two biggest public companies holding Bitcoin suffered tremendous losses following the recent BTC price crash including the first country that acquired BTC as legal tender.
The recent Bitcoin (BTC) crash has plunged many investors of the top asset class into major losses, with a large chunk of their holdings in dollars wiped off.
Since June 10, 2022, Bitcoin has seen its value crash from above $30,000 to below $23,000. Following the massive crash of the world’s largest cryptocurrency by market capitalization, investors in the asset class have suffered major losses.
For instance, leading business intelligence company MicroStrategy and American electric car company Tesla have seen a large percentage of the Bitcoin value disperse into the wind, following the recent market crash.
MicroStrategy’s Bitcoin Holding Value
It is no longer new that MicroStrategy is heavily invested in Bitcoin. The company is considered a major pioneer in spearheading the massive adoption of Bitcoin among institutional and corporate investors.
Since MicroStrategy commenced its Bitcoin accumulation in August 2020, the company has purchased a total of 129,218 BTC. The aggregate amount MicroStrategy spent in accumulating the Bitcoin was around $3.96 billion. Unfortunately, the recent Bitcoin crash has caused MicroStrategy a loss of $1B, at the time of writing.
Coindesk reports: “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 touches $22,900 in Monday trading.”
Tesla’s Bitcoin Holding
Elon Musk’s Tesla was also not spared a massive Bitcoin dip. Aside from Dogecoin (DOGE), Musk has been a Bitcoin proponent, declaring support for the asset class on a few occasions.
At the time of writing this line, Tesla holds a total of 42,902 Bitcoin, which was acquired at an aggregate sum of $1.32 billion.
However, Bitcoin’s crash also plunged Tesla BTC’s holding value to $1 billion, thus implying that the American electric car company has lost a total of $320 million so far.
Despite the losses these corporate investors have incurred in recent times, they do not seem bothered, as it appears they are into Bitcoin for the long term.
Meanwhile, El Salvador is also having a rough ride with its Bitcoin investment. Following El Salvador’s Bitcoin adoption as a legal tender, the country has purchased a total of $2,301 BTC.
The aggregate amount of a unit of BTC owned by El Salvador was purchased at an aggregate price of $43,900, which implies that a total of 2,301 BTC was acquired at $101 million. With Bitcoin crashing to $23,465, El Salvador’s Bitcoin holding is worth approximately $54 million, which implies that the country is down $56 million.
Other Cryptocurrencies Dip Amid Rising Inflation
Meanwhile, the unfortunate development that befell Bitcoin is also noticed in other cryptocurrency projects, including Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), Ripple (XRP), etc.
The cryptocurrency market reacted alongside other financial markets following reports of surging inflation in the United States.
With the Federal Reserve poised to mitigate rising inflation, cryptocurrency investors fear that more stringent measures will be implemented to make it a reality.
Bitcoin is currently trading around $23,465, down 13.3% in the last 24 hours, data on Coingecko shows.