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Crypto Weekly
Public companies like Tesla have invested billions in crypto, and they're hurting O
ver the last few months, Bitcoin's value has plummeted spectacularly, down around $1.4 trillion since hitting an all-time high last November. CoinGecko estimates that public companies have suffered losses of almost $7 billion in the crypto market. Individual traders have sold, lost, sulked, and bought again. A recent swoon in cryptocurrency has left many major companies red-faced, even though Bitcoin became an increasingly popular hedge against inflation in 2021. Quartz previously reported that 27 publicly traded companies hold Bitcoin on their balance sheets, putting the volatile digital currency where reliable assets typically reside. Recently, the hedge hasn't performed well. Publicly traded companies own approximately 78% of all Bitcoins.
www.cryptoweeklymag.com
Quartz previously reported that 27 publicly traded companies hold Bitcoin on their balance sheets, putting the volatile digital currency where reliable assets typically reside. Recently, the hedge hasn't performed well Around 169,000 Bitcoin are collectively held by Tesla and MicroStrategy, two publicly traded companies.
MicroStrategy alone holds 121,000 Bitcoins, which are equivalent to $3.5 billion. MicroStrategy has been taking a massive gamble on Bitcoin for months, building up its crypto reserve unapologetically. Saylor frequently defends and praises the digital currency on Twitter, where he is the founder and CEO of the company. According to Business Insider, Taylor owns at least $866 million in Bitcoin. Despite the crypto carnage, MicroStrategy does not intend to turn its back on Bitcoin. Last week, MicroStrategy CFO Phong Le told the Wall Street Journal that the company has a buy-and-hold strategy for Bitcoin. If the company has excess cash or finds other ways to raise money, it will continue to invest in the cryptocurrency. Fortune contacted
February 2022 | Volume 14
