How will the "Everything Bubble" bust affect cryptocurrency?
According to a July 22 Bloomberg News story, Tesla, MicroStrategy, and Block's wager on Bitcoin (BTC) resulted in a total loss of $5 billion in the second quarter.
According to the research, these corporations suffered enormous losses as a result of Bitcoin's 59 percent decrease during the quarter, based on their previous holdings disclosure.
MicroStrategy
MicroStrategy, which paid almost $4 billion to purchase 129,699 Bitcoins, accounts for 70% of the $5 billion loss. The damage suffered by the business intelligence organization is reportedly $3.4 billion.
That hasn't stopped the business or its CEO, Michael Saylor, from holding BTC, though. On June 29, MicroStrategy made a $10 million Bitcoin acquisition.
Tesla
On July 20, Tesla said that it has sold $736 million worth of its Bitcoin assets, at an average transaction price of $29,714 per BTC.
In the meantime, Tesla disclosed that its profitability had been impacted by its Bitcoin impairment loss.
Elon Musk intimated that the electric car manufacturer is still willing to purchase more Bitcoin in the future despite the loss and that the company's selling should not be interpreted as a "verdict" on the commodity.
Break Inc.
On March 31, Block Inc., a company run by Jack Dorsey, possessed $336 million in Bitcoin. According to Coingecko data, the stockpile is currently valued at about $190 million, representing a loss of $146 million for the second quarter.
The fact that Dorsey has continued to promote Bitcoin doesn't seem to have deterred him in the least. The creator of Twitter recently teamed up with Jay Z to launch a learning initiative called Bitcoin Academy with the goal of increasing interest in cryptocurrencies in underserved areas.
That hasn't stopped the business or its CEO, Michael Saylor, from holding BTC, though. On June 29, MicroStrategy made a $10 million Bitcoin acquisition.
expert opinion
The losses, according to specialists who talked with Bloomberg, demonstrated to the businesses the danger of investing in an erratic asset like Bitcoin.
Matt Maley noted that if the asset undergoes another large decline, the corporations holding the coin might be motivated to sell.