MarketsPublic Companies like Microstrategy, Tesla & Square aren't Selling their Bitcoin!

Public Companies like Microstrategy, Tesla & Square aren’t Selling their Bitcoin!

Do you remember when public companies were putting bitcoin on their balance sheet? First, we had Microstrategy then Tesla and Square.

Well, let’s go take a little update as to how that’s going so far. As we know it all started with Microstrategy in august of 2020. They spent just under 4 billion to date and they’ve bought up about 130 000 bitcoin. Tesla and Square both companies bought much less but they still bought hundreds of millions to just over a billion and a half dollars worth of bitcoins. 

In a recent article on block works, we see that Tesla acquired 43 200 bitcoin for about 1.5 billion dollars. That’s now only worth 844 million which represents 655 million dollars. paper loss. Now, this is a minuscule part of their balance sheet as they have about 17.55 billion in cash and cash equivalents as of March 31st. 

Now let’s talk about Square. They’ve lost about 30 of their bitcoin the company reported 8027 bitcoin which they purchased for 220 million dollars. Square bitcoins are now worth 157 million which is 63 million dollars in unrealized losses. Again a minuscule amount as their balance sheet has 5.3 billion in cash on hand. 

Now let’s talk about Microstrategy which is holding their bitcoins tightly as Microstrategy CEO Michael Saylor. He says selling bitcoin is a mistake. They’re down about 36 percent on their bitcoin but still holding tightly.

Related: Microstrategy acquired an additional 480 BTC

If we take a look and compare these stocks to bitcoin and the NASDAQ 100. We can see that everything is down. That’s a function of monetary policy leading to tighter financial conditions. We can see both that block and Microstrategy are down more than bitcoin but Tesla is still hugging closer to the NASDAQ 100. 

This isn’t just these three companies though. As we take a look there are a number of other businesses that have purchased quite a bit of bitcoin.

This heart shows exactly how much they purchased it for and what their current unrealized losses are. So you see at the top Microstrategy bought 3.98 billion dollars worth of bitcoin. Now they are sitting on a 1.44 billion dollar unrealized loss. Tesla sitting on about 650 million dollars unrealized loss as well.

So here if we take a look at all of the companies that have bought bitcoin you can see here in this chart if you take look here you can see that it’s a Microstrategy Tesla block but there are also many others. Some of these are bitcoin mining companies some of them are crypto-related and some are just businesses that want to hold bitcoin on their balance sheet. Naturally, the hater’s critics and those who have been screaming that bitcoin are worthless. They’re showing victory on the internet right now.

But one thing that should sit in your mind is these companies full of thousands of employees. Some with very large finance teams. They aren’t selling their bitcoin yes they acquired bitcoin and it is down in an unrealized loss position. They are in heavy loss on their bitcoin holdings but none of them out of Microstrategy Tesla and block have actually sold their bitcoin. 

In fact, Microstrategy’s been buying more, and Tesla and block are simply holding it and don’t listen to what people say. Just watch what people with skin in the game are doing. Obviously, they’re not selling which tells me that they’ve got a long-term conviction in this strategy. Now of course it doesn’t feel good to have unrealized losses. Some of the accounting rules for public companies aren’t exactly friendly in these situations. 

What we know is that these companies all are led by people who have a deep conviction in bitcoin as a decentralized digital currency. They went ahead and they took the capital off their balance sheet they converted some of it into bitcoin and they’re holding. You could even argue that these three publicly traded companies have diamond hands. They’re gonna hold through the volatility they’re not selling no matter how low the price goes.

Read: The crypto crash continues BTC sees its biggest quarterly drop in over a decade

The conviction is deep and the thinkers are long-term oriented. Bitcoin sits on the balance sheet of many public companies and is the largest purveyor of this strategy. They seem to be unfazed by the drop in bitcoin’s price. That likely will prove to be a great strategy over a long period of time. Bitcoin’s volatility goes up a lot it goes down a lot but over a long period of time, it continues to gain value against the US dollar. My guess is that shareholders over that period of time are going to be very happy. That their leadership went ahead and made these decisions even if in the short term it ain’t looking so hot.


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