{"id":5839,"date":"2022-07-22T13:35:52","date_gmt":"2022-07-22T13:35:52","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=5839"},"modified":"2022-07-22T13:35:52","modified_gmt":"2022-07-22T13:35:52","slug":"tesla-microstrategy-blocks-bet-on-bitcoin-leads-to-5b-loss-on-books-in-q2-bloomberg","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5839","title":{"rendered":"Tesla, MicroStrategy, Block&#8217;s bet on Bitcoin leads to $5B loss on books in Q2 \u2013 Bloomberg"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>Tesla, MicroStrategy, and Block\u2019s bet on Bitcoin (BTC) led to a combined loss of $5 billion on the books in the second quarter, Bloomberg News reported on July 22.<\/p>\n<p>According to the report, Bitcoin\u2019s 59% decline during the quarter led to staggering losses for these companies based on their previous holdings disclosure.<\/p>\n<h2>MicroStrategy<\/h2>\n<p>MicroStrategy makes up 70% of the $5 billion loss as it spent around $4 billion to buy 129,699 Bitcoins. The business intelligence company\u2019s loss is estimated at around $3.4 billion.<\/p>\n<p>However, that has not dissuaded the company nor its CEO, Michael Saylor, from continuing to hold BTC. MicroStrategy\u2019s last purchase was $10 million worth of BTC on June 29.<\/p>\n<h2>Tesla<\/h2>\n<p>Tesla said on July 20 that it sold 75% of its Bitcoin holdings for $936 million at an average sale price of $29,714 per BTC.<\/p>\n<p>Meanwhile, Tesla revealed that its Bitcoin impairment loss had affected its profitability.<\/p>\n<p>Despite the loss, Elon Musk hinted that the electric car maker is still open to buying more Bitcoin in the future and that the company\u2019s sale should not be taken as a \u201cverdict\u201d on the asset.<\/p>\n<h2>Block Inc<\/h2>\n<p>Jack Dorsey-led Block Inc. owned $336 million in Bitcoin on March 31. Coingecko data indicated that the stash is now worth roughly $190 million \u2014 a loss of $146 million for the second quarter.<\/p>\n<p>The loss doesn\u2019t appear to put off Dorsey, who has continued evangelizing Bitcoin. The Twitter founder recently partnered with Jay Z to establish an educational program tagged Bitcoin Academy to raise awareness about crypto in underprivileged neighborhoods.<\/p>\n<h2>Expert views<\/h2>\n<p>According to experts who spoke to Bloomberg, the losses showed the companies the risk of purchasing a volatile asset like Bitcoin.<\/p>\n<p>Matt Maley added that the companies holding the coin might be tempted to sell if the asset experiences another significant drop.<\/p>\n<p lang=\"en\" dir=\"ltr\">.@Tesla selling #BTC is great news for @Bitcoin! 1st, market no longer needs to worry about @Tesla selling #BTC which has been haunting us for a long time. 2nd, @Tesla selling nearly 1 BIL USD worth of #BTC shows the liquidity of @Bitcoin to all big corps.<\/p>\n<p>\u2014 H.E. Justin Sun\ud83c\udf1e\ud83c\uddec\ud83c\udde9 (@justinsuntron) July 21, 2022<\/p>\n<p>However, crypto enthusiasts like Justin Sun said Tesla\u2019s ability to sell almost $1 billion worth of the coin showed the liquidity in the market and that he expects \u201cmore big corps\u201d to buy the asset in the future.<\/p>\n<p>Posted In: Bitcoin, Bear Market<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/tesla-microstrategy-blocks-bet-on-bitcoin-leads-to-5b-loss-on-books-in-q2-bloomberg\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tesla, MicroStrategy, and Block\u2019s bet on Bitcoin (BTC) led to a combined loss of $5 billion on the books in the second quarter, Bloomberg News reported on July 22. According to the report, Bitcoin\u2019s 59% decline during the quarter led to staggering losses for these companies based on their previous holdings disclosure. MicroStrategy MicroStrategy makes [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5840,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-5839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5839"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5839\/revisions"}],"predecessor-version":[{"id":5841,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5839\/revisions\/5841"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5840"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}