MicroStrategy’s Bitcoin Bet Loses $100 Million in a Single Day

MicroStrategy, a business intelligence firm that has invested $425 million in Bitcoin since September, saw $100 million in value wiped from its investment in the last 24 hours. 

MicroStrategy raised eyebrows when it put $425 million at risk of Bitcoin’s volatile price. For the first few months, it paid off wonders—the company’s stash rose to about $740 million. Yet with crypto prices plummeting today, while the company is still in profit, it has lost an awful lot of this newly gained value.

Bitcoin’s price took a big hit in the last 24 hours. It fell from $19,389 to $16,581, representing a percentage decrease of 14%. As a result, some of Bitcoin’s big investors have woken up to major losses.

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MicroStrategy has felt Bitcoin’s price drop more than most. As a result of the crash, the business intelligence giant has lost out on approximately $107 million dollars, proving just how risky it is to invest heavily in an asset as volatile as Bitcoin. 

Despite the downturn, however, MicroStrategy’s Bitcoin is still in overall profit. At the time of MicroStrategy’s $425 million investment, the average purchase price of Bitcoin was $11,111. With the current Bitcoin price being $17,375 this means Bitcoin is still about $6,200 more valuable than it was when MicroStrategy invested in it.

$262 Million in Bitcoin Longs Were Liquidated in Just One Hour

Bitcoin’s not called a volatile asset for nothing. Just as the overall sentiment among crypto circles was turning from bullish to extremely bullish, Bitcoin did its thing and dropped over 11% this morning—liquidating nearly $556 million across three popular crypto exchanges along with it. Of that, over $262 million in Bitcoin longs were liquidated on crypto exchange Binance in a single hour alone. Hourly liquidations of long positions on #Binance: - $262M at 3am UTC- $163M at 8am UTC#Bitcoin pi...

In other words, MicroStrategy is still making millions of dollars from its Bitcoin investments. At the time of writing, MicroStrategy’s Bitcoin is worth $664 million, representing a net gain of $239 million, and a percentage gain of 56%. 

MicroStrategy might have lost over $100 million dollars, but its Bitcoin purchase is still paying dividends—so far.