Fri. Jul 1st, 2022

Michael Saylorfounder and CEO of MicroStrategy, is reassured even with his company suffering from $1 billion loss. According to the entrepreneur, they already knew about the volatility of Bitcoin before adopting it and prepared for it. Owner of a stack of 129,218 BTC, today MicroStrategy is the public company with the largest amount of bitcoins in cash. More importantly, it is being watched by many others who are considering ditching fiat currencies. Therefore, the company’s behavior during the first bear market it faces deserves attention. After all, Michael Saylor’s love for Bitcoin I could take it to bankruptcy or to glory.

MicroStrategy knew adversity

For Michael Saylor, the future of fiat currencies is death by loss of value. Bitcoin, on the other hand, has two paths, drop to zero or reach 1 million dollars per unit. Despite citing that Bitcoin could go to zero, Saylor stated that this is unlikely. After all, for the billionaire BTC is better than gold and therefore must exceed its value at some point. Regarding the recent drop in Bitcoin this week, reaching 34%, the CEO of MicroStrategy stated that the company has structurally prepared for it, knowing that Bitcoin is an asset with high volatility.

“When MicroStrategy adopted a HODL strategy, it anticipated and structured its balance sheet so that it could continue [manteniendo sus bitcoins] in the midst of adversity.”

Despite showing calm in the midst of panic during one of the worst days in history, it should be noted that MicroStrategy even took a loan to buy more bitcoins in the past, and the liquidation price was exceeded this Tuesday (14). However, Saylor did not comment on the matter.

MicroStrategy wasn’t the only one to lose

In addition to MicroStrategy, other companies betting on Bitcoin are suffering losses. As a highlight, Tesla has a 30% loss on its 42,902 BTC. The same goes for other giants like MercadoLibre, with a 50% loss on their 150 BTC. The same occurs with the country of El Salvador, which although it has accumulated a lot of bitcoins during recessionss, it is far from its average price. Finally, the history of Bitcoin is full of giant drops, such as 87% in 2013–2014, 83% in 2017–2018, and to date 70% in this period between 2021–2022. Despite that, its price has always recovered and that is what Michael Saylor and so many other holders hope will happen in the future.

By Farwa Raza

Farwa Raza is a writer who specializes in news articles. She has been writing on wttspod.com for over one years, and during that time she has written over 100+ articles on various topics ranging from politics to entertainment. Her goal as an author is to provide readers with the latest news stories while also providing her own opinion on them.