**Michael Saylor, the founder and CEO of MicroStrategy, made a big bet on bitcoin, which has had significant consequences. The book loss of bitcoin held by the company has reached about $1billion** It is reported that in the past two years, MicroStrategy has accumulated nearly 130000 bitcoins and spent a total of US $3.97 billion.
According to the latest quarterly documents submitted by the company to the US Securities and Exchange Commission (SEC), since 2020, the average price of bitcoin purchased by the company has risen steadily, reaching US $30700 / piece as of March 31.
Influenced by the aggressive interest rate hike expectation of the Federal Reserve and rampant inflation, bitcoin plummeted by more than 17% on Monday, falling below US $24000, the lowest level since december2020. As of press time, bitcoin fell another 8.92% to US $21193.77. Under the impact of the sharp decline of bitcoin, MicroStrategy currently holds bitcoin worth only slightly more than $3billion, which means that the relevant losses have reached nearly $1billion.
MicroStrategy closed down about 25% at $152.15 on Monday. Since Michael Saylor began to add bitcoin to the company's balance sheet in August 2020 to hedge against inflation, the company's shares have been highly correlated with bitcoin.
For MicroStrategy, if the price of bitcoin falls further, the company may need to provide additional collateral for the $205million loan obtained in March this year. MicroStrategy said on a conference call in May this year that if the price of bitcoin fell to about $21000, they would need to invest more money than the initial commitment of $820million.