Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
MicroStrategy, Tesla, and other public companies holding Bitcoin face significant impairment losses as Bitcoin (BTC) closed the second quarter below $19,000.
MicroStrategy BTC holding down 58%
According to Bloomberg News, MicroStrategy could report a significant impairment loss of $3.4 billion due to the sharp decline in BTC prices between April and June 2022.
The company reported $5.9 billion in Bitcoin holdings at the end of the first quarter.
That number has now dropped to $2.4 billion, representing a 58% drop in value within three months.
MicroStrategy, however, remains committed to its Bitcoin goal as it bought 480 bitcoins for $10 million between May 3 and June 28.
Tesla facing $400M loss
Meanwhile, Tesla’s holdings — $1.5 billion worth of BTC bought in February 2021 — were valued at $1.2 billion at the end of the first quarter.
Tesla’s holdings fell around 33% during the second quarter to the current estimated value of $820 million — an impairment loss of over $400 million.
Meitu records impairment losses
The company attributed this loss to the rapid decline in the crypto market.
Meitu has yet to sell any of its crypto holdings.
Jack Dorsey’s Block could record losses too
Apart from the companies mentioned above, another public company that could face impairment losses from its Bitcoin investment is Jack Dorsey’s Block.
But that could change significantly, considering BTC lost 58% of its value in the second quarter.
However, CEO Jack Dorsey remains bullish on the asset and recently announced that Block will build a decentralized internet on the Bitcoin blockchain.
Meanwhile, the significant unrealized losses for these companies could discourage other investors from buying Bitcoin.
As of press time, Bitcoin was trading at $19,481, according to CryptoSlate data.
The post Public companies holding Bitcoin face impairment losses amid market crash appeared first on CryptoSlate.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.