As bitcoin fell below $24,000, companies that had staked some of their cash in the asset are posting losses.
In a context of a new fall in the cryptocurrency market, the shower is cold for entities that have placed part of their cash in bitcoin. To date, 50 companies and 4 States (including El Salvador and Ukraine) are concerned. The latter most likely observe the price of bitcoin falling since this weekend: at 5:30 p.m., bitcoin is down more than 14%, trading at 23,500 dollars.
A loss of almost 1.5 billion dollars
According to the Bitcointreasuries site, Telsa and Microstrategy lost nearly $1.5 billion due to the fall in bitcoin, respectively more than $900 million for Microstrategy and more than $500 million for Tesla. As a reminder, Microstrategy holds 130,000 bitcoins and Tesla 43,000 bitcoins. While companies are aware of the volatility in the cryptocurrency market, Microstrategy CFO Phong Le had declared that his company could trigger a “margin call” if bitcoin were to fall to around $21,000.
The companies’ losses will have to be assessed in the next financial results of the two companies, especially if they were to carry out certain transactions in bitcoin. However, it would seem that companies continue to see this asset in the long term. At the end of April, we learned in particular that the company Tesla had kept all its bitcoins for a year. The value of his bitcoin holdings has been the same since September and is worth $1.26 billion, revealed its latest quarterly report.
Digital assets are considered “intangible assets with an indefinite life under applicable accounting rules,” Tesla said. “Therefore, any decrease in their fair value below their carrying value at any time after their acquisition will require us to record impairment charges, whereas we cannot make any upward revisions for any increase in the market price. until a sale,” says Tesla.
The downward trend can also be observed on the Nasdaq, the American technological index, which has lost more than 3% since its opening at 3:30 p.m. and, where the shares of these companies are also traded. Microstrategy shares fell 27% 10 minutes after the Nasdaq opened. For its part, Tesla stock fell almost 6% at the same time.