- Tesla, MicroStrategy and Block owned about 85% of Bitcoin held by public companies, currently numbering 27 according to data by CoinGecko.
- The three companies faced paper losses of up to $5 billion as Bitcoin price fell to $18,700 in June.
- Tesla sold 75% if its bitcoins in Q2.
MicroStrategy, Tesla and Block (formerly Square) saw their combined Bitcoin (BTC) holdings shrink by $5 billion in value during the second quarter of 2022, Bloomberg reported.
The hit comes after a 59% dive for BTC price in the quarter, with the calculations reflecting the three companies’ holdings based on previously disclosed figures.
For Michael Saylor’s MicroStrategy and Jack Dorsey’s Block, these are only paper losses since the companies have not declared any sales of Bitcoin within the period.
Data from CoinGecko shows MicroStrategy holds 129,218 bitcoins acquired at a combined value of $4 billion, while Block holds 8,027 bitcoins that were valued at over $366 million in March.
Tesla, on the other hand, announced it had sold 75% of its Bitcoin (BTC) holdings in the quarter, adding $936 million in cash to its balance sheet. However, the electric carmaker purchased its bitcoin at $1.5 billion.
$5 billion ‘paper losses’
As Bitcoin price fell below $20,000 in June, with prices around $18,700 on June 30, the three firms’ combined losses were around $5 billion.
The quartet had owned roughly 85% of the BTC held by public companies in the quarter, with 70% of the paper losses marked on MicroStrategy.
Saylor has previously said his company has not sold its Bitcoin, but investors are likely to be keen on seeing this reflected in the company’s Q2 earnings report on 2 August. Block is also set to release its results on 4 August.
The post MicroStrategy, Tesla, Block faced a $5 billion hit on their Bitcoin bet in Q2 appeared first on CoinJournal.
Ndasi Tata is a Bitcoin entrepreneur from Cameroon, who holds an M.Sc in Blockchain and Digital Currency from the University of Nicosia. He is an advocate of Bitcoin in Africa and uses various social media platforms to promote his ideas and ventures. Tata has a background in state journalism and has established himself as a significant figure in the Bitcoin community.