As the bear market bites, holding crypto investments can be a tough pill to swallow. Consider two of the largest bag holders of publicly traded companies. They are down by almost $2 billion dollars on their Bitcoin buys.
According to Bitcointreasuries.net, the 130,000 and 43,00 Bitcoin (BTC) held by Microstrategy and Tesla respectively are worth considerable sums less.
For Microstrategy, Michael Saylor splashed out almost $4 billion ($3,965,863,658) on 129,218 BTC, approximately 0.615% of the 21 million total supply. The Bitcoin price nosedive has ripped away earlier gains: the investment is worth $3.1 billion ($3,074,987,824), a loss of $900 million. Plus, in premarket trading on June 13, Microstrategy stock (MSTR) plunged to its lowest levels in months.
For Elon Musk, whose Tesla automotive company bought over 40,000 Bitcoin during the 2021 bull market, his $1 billion profit has gone south. The cost basis of $1.5 billion for 43,200 BTC, or 0.206% of the total Bitcoin supply, is now worth $1 billion ($1,017,789,280), down almost $500 million.
The total impairment loss (the loss in value) shared between the billionaire Bitcoin believers is roughly $1.4 billion. Given that both companies are publicly traded, the July quarterly results will dissect precisely how much each company is down on its Bitcoin assets.
At one point during November last year, Bitcoin surpassed Tesla’s market capitalization. Currently, Tesla’s market cap is roughly $721 billion while Bitcoin languishes at less than half a trillion dollars. Equally, the total market cap for crypto is plummeting, falling below one trillion dollars.
For Microstrategy, the situation is darker still. Saylor will have to top up a loan if and when the price of Bitcoin hits $21,000.
little reminder that Saylor needs to add collateral around $21k $BTC
— yeezus 幸栄 (@yeezuscapital) June 13, 2022
snippet from Q1 earnings: pic.twitter.com/OM7haXSk6A
Saylor had previously patched things up with investors, sharing that the $205,000,000 loan it had taken out requires $410,000,000 collateral. Nonetheless, moneybags Microstrategy has more than 115,000 BTC it could pledge if the price continues to flatline.
Related: Crypto winter survival guide: Community shares game plan for the bear market
Ultimately, if the fallout from Celsius' reported ‘insolvency’ spreads, there could be more pain on the horizon. For some Bitcoin believers, such as Bitcoin's first restaurant chain Tahini’s, “nothing has changed.” They will continue to accumulate, albeit at much lower prices.
Reddit has introduced Reddit Answers, an AI feature developed over six months to enhance user experience and reinforce the platform's competitive edge.
CatherineChina has intensified its crackdown on AI-altered videos that distort classic films and cultural stories, demanding their removal from platforms by 10 December 2024. Authorities cite concerns over cultural misrepresentation, copyright violations, and ethical boundaries.
WeatherlyBased on true events, Crypto Man stars the late Song Jae-rim, whose recent passing adds poignancy to its January 15, 2025, release, promising a compelling portrayal of its real-life story.
KikyoHackers are targeting Web3 professionals with fake job offers, spreading malware through a fraudulent meeting app called Meeten. The malware, Realst, steals sensitive data and cryptocurrency, exploiting victims’ trust and connections to digital assets.
AnaisBinance has not yet decided on its new global headquarters due to complexities like tax laws and talent acquisition challenges. Legal troubles, including Changpeng Zhao's legal issues and a $4.3 billion fine, have led Binance to restructure its leadership and adopt better governance strategies.
WeatherlyCaroline Crenshaw's SEC renomination faces targeted opposition, including digital media campaigns, reflecting America's growing interest in cryptocurrency and fear of missing out on the evolving digital asset market.
CatherineAgoda released an AI-generated short film, *Leo’s Magical Travel Adventures*, showcasing Asia Pacific's diverse cultures through vibrant storytelling. Created with ChatGPT and Midjourney, the film celebrates travel's power to connect people and inspire exploration.
AnaisChina has introduced the RT-G, an AI-powered spherical robot used by police for patrolling and crime prevention, equipped with tools like facial recognition and net guns. The robot’s spherical design allows it to navigate various terrains, and it is part of a broader trend of integrating robotics into law enforcement in China.
JoyEl Salvador and Argentina have signed an agreement to collaborate on cryptocurrency regulation and innovation in Latin America. The deal aims to share expertise, boost crypto growth, and strengthen the regulatory framework for digital assets in both countries.
AnaisOpenAI has made its Canvas tool available to all ChatGPT users, including free-tier users, with new features for real-time collaboration and code execution. This update is part of the "12 Days of OpenAI" campaign, which also introduced new tools like the Sora video model and the ChatGPT Pro subscription.
Weatherly