Tesla, Microstrategy stocks react
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
$83,876.00
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6.69%$1.86
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2.30%$0.999298
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1.98%$0.069792
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0.00%$1.68
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9.70%$0.00000043
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-0.06%$83,871.00
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0.37%$1,832.42
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0.12%$110.54
0.01%$0.139332
-4.84%$1,833.14
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8.56%$0.184143
4.62%$83,652.00
-1.20%$1,911.81
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0.00%$0.830869
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2.78%$1.00
0.13%$0.00655034
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2.21%$1,811.86
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1.15%$2.82
2.40%$0.00930711
4.48%$0.546277
-2.20%$0.00489219
-2.83%$117.41
-2.29%$0.00358093
-5.39%$1.43
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0.28%$1,816.39
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10.19%$1.16
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-2.50%$0.999509
0.04%$2.90
-1.10%$1.16
-4.66%$0.10317
17.20%$0.614397
-2.93%$83,534.00
-1.55%$21.79
-1.82%$3.39
-2.68%$3,157.01
0.77%$0.226581
-4.31%$82,664.00
-2.62%$1,930.42
-3.11%$0.518018
0.23%$0.186685
-3.62%$2,000.17
-3.29%$15.24
-2.79%$0.118963
0.89%$0.244219
-3.90%$1,989.29
-3.13%$0.521
-0.03%$21.22
0.13%$1,682.03
-1.61%$1,828.07
-3.26%$0.00309008
-5.31%$0.02912361
-2.09%$0.676178
-3.17%$0.062132
-4.04%$0.100253
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-0.88%$0.01112868
-2.34%$0.908306
-5.33%$0.519385
-0.95%$0.999795
0.01%$0.997759
-0.13%$83,422.00
-1.61%$0.027448
-4.88%$0.00034711
-24.01%$0.616111
-3.39%$0.846744
-3.26%$1,963.53
-3.41%$0.00229566
-2.92%Reading
Bitcoin whales like Tesla and MicroStrategy are all down on their investments today after the leading cryptocurrency plummeted again overnight, hitting a low of $26,350.
The last time the leading crypto was this cheap was in December 2020, according to CoinMarketCap.
Prices have since risen sum and Bitcoin is now trading at $28,387.
Despite the minor rise, this effectively wipes out all of the gains made by Tesla's Bitcoin bet.
In early 2021, his electric car company Tesla invested $1.5 billion in Bitcoin at an average purchase price of $31,620. Tesla then sold off 10% of its Bitcoin holdings to test liquidity, earning a tidy profit, or “positive impact,” of $101 million just over a month later, according to an SEC filing.
Musk didn’t sell any more Bitcoin throughout 2021’s wild bull run, despite prices hitting an all-time high of $68,789.63 on November 10, 2021.
Now, Bitcoin’s current price is roughly 10% lower than the price Tesla paid for it. The company has 42,000 Bitcoin left on its balance sheet, worth about $1.19 billion.
Michael Saylor's Microstrategy is also underwater today following the volatile price action.
Since August 2020, his cloud software company has bought 129,218 Bitcoin at an average price of $30,200 a coin. At that price, Microstrategy’s Bitcoin holdings are worth $3.9 billion.
Today’s Bitcoin crash means Saylor’s Bitcoins are currently worth $3.6 billion.
Contrary to the maximalist doctrine that Bitcoin is a store of value akin to “digital gold,” the currency has actually been trading more like a tech stock, according to a report published on April 18 by Arcane Research.
Today, MicroStrategy's stock is also plummeting. At today’s price of $148, MicroStrategy shares are currently down 11.5%.
Tesla stock dropped 4% overnight and currently trades for $734.
Elsewhere, crypto-adjacent companies like Coinbase, PayPal, and Robinhood have also dropped 23%, 3%, and less than 1%, respectively.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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