The largest Bitcoin holder, MicroStrategy, lost money when bitcoin fell below their average purchase price of $30,700 today.
Michael Saylor’s company first faced unrealized losses when bitcoin fell below their average purchase price.
The bitcoin price has not been performing well over the past few weeks, falling as much as 20% in just 36 days since its latest rally in late March. Over the past few days, BTC has extended its losses as it dropped another 19.47% today, falling below $30,000.
MicroStrategy paid an average of $30,700 for every bitcoin they hold, now holding 129,000 BTC.
MicroStrategy last bought bitcoin in early April, funded with a bitcoin-backed loan. The company bought back 4,167 BTC at the time for about $190.5 million, an average price of about $45,714 per bitcoin.
However, due to the nature of the loan, the company is at risk of being liquidated if the BTC price falls below $21,000. MicroStrategy can avoid margin calls by depositing more BTC as collateral.
Tesla is also losing money, electric car company bought 43,200 BTC last year for $1.5 billion, price per bitcoin is around $34,700, leaving the company with almost 10% unrealized loss at the time of writing – about 155,000,000 dollars.
It is not clear how these whales will cope with a situation where their bitcoin holdings are losing money over an extended period of time.