Bitcoin’s slide sparks a mix of fortunes in the Metaverse Market, with some stocks weathering the storm while others face significant losses.
The crypto market is experiencing a correction, with bitcoin facing its lowest level in five months. The drop has left Strategy marginally in the green on its bitcoin acquisition strategy.
Bitcoin is a decentralized digital currency that was created in 2009 by an anonymous individual using the pseudonym Satoshi Nakamoto.
It operates on a peer-to-peer network, allowing users to send and receive payments without the need for intermediaries like banks.
Bitcoin's underlying technology, blockchain, records all transactions, ensuring transparency and security.
With its limited supply of 21 million coins, bitcoin has gained popularity as a store of value and medium of exchange.
Strategy’s Resilience Amidst Market Turmoil
Strategy (MSTR) owns 528,185 BTC, valued at $39.5 billion, giving it an average cost basis of $67,458 per bitcoin. Despite the downturn, the company remains profitable with a 10% unrealized gain. Its stock is down just 2% year-to-date.
Liquidation Risk: A Concern for MSTR and Other BTC-Exposed Stocks
MSTR faces no liquidation risk even if bitcoin falls below its cost basis, according to CoinDesk research. However, other BTC-exposed stocks like Metaplanet and Semler Scientific are facing significant losses. Metaplanet’s stock dropped 20% on Monday alone, reflecting mounting pressure from the downturn.
Metaplanet and Semler Scientific: Heavy Losses Amidst Bitcoin’s Slide
Metaplanet lost 20% on Monday alone, while Semler Scientific has seen losses of 38%. The Japanese company is about 15% underwater on its bitcoin strategy. With bitcoin down 20% this year, Metaplanet and Semler Scientific are facing significant challenges.
CEO Michael Saylor’s Outlook
Strategy CEO Michael Saylor remains optimistic despite the market downturn. His focus on long-term value creation will likely help Strategy navigate the current correction.
Michael Saylor is an American entrepreneur and business executive, best known for his advocacy of Bitcoin.
He serves as the CEO of MicroStrategy, a cloud-based business intelligence company he co-founded in 2005.
Saylor has been a vocal proponent of Bitcoin, using over $4 billion of MicroStrategy's treasury reserves to purchase BTC.
He believes that 'Bitcoin is a store of value and a hedge against inflation, citing its limited supply and decentralized nature.'
Key Statistics: BTC-Exposed Stocks
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Strategy (MSTR): 10% unrealized gain, average cost basis of $67,458 per bitcoin
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Metaplanet: 4,206 BTC holdings, valued at approximately $184 million, with an average acquisition cost of ‘$12,925,027 yen’ (‘$88,800’) per coin
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Semler Scientific (SMLR): 38% losses on its bitcoin holdings, with an average acquisition cost of ‘$87,854’ per BTC
