5 Ways to Increase Acceptability of Cryptocurrency: From Skepticism to Mainstream Adoption
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2022-05-13 | Selina Mathew
Given the current adverse emotions in the market, MicroStrategy Incorporated, a Nasdaq-listed business analytics and software corporation, is sitting on a large loss in Bitcoin (BTC).
The firm appears to be one of the most well-known Wall Street corporations, having been the first to use Bitcoin to shore up its balance in August 2020.
MicroStrategy had amassed a total of 129,218 Bitcoin units at that time, with its most recent acquisition of 4,167 Bitcoins in early April for $190.5 million. The firm's total digital currency holdings were purchased for an average of $30,700.
The firm's Bitcoin assets are valued at $3.808 billion at the time of writing, based on the current price of the main digital currency, which is $29,472.45.
The corporation paid $3.97 billion for the coins, resulting in $162 million in paper losses. MicroStrategy has received some criticism for its plan to increase revenue, with some claiming that the digital currency's instability cancels any technological advancements.
MicroStrategy investors are reacting in lockstep with the company's Bitcoin profitability forecast, as the stock has lost a considerable percentage of its value year to date.
MicroStrategy (MSTR) Founder and CEO Michael Saylor earlier addressed the business's obligations and Bitcoin-backed loans on Twitter, noting that "if the price of #BTC goes below $3,562, so the company might post some other collateral." Saylor is not expected to sell Bitcoin despite the current drop, according to the market.
Most Bitcoin-related companies are facing a similar fate, particularly those that trade on public exchanges, as the crypto-bearish ecosystem's outlook fueled little demand that impacted these companies' operations. MicroStrategy is a Bitcoin investor with a lot of faith in the currency, having borrowed $205 million from Silvergate Bank in March to buy additional BTC units.
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