Michael Saylor’s MicroStrategy (MSTR) is sitting on an unrealized loss of more than $1 billion on its bitcoin (BTC) holdings as the price of the largest crypto by market value touches $22,900 in Monday trading.
With bitcoin evangelist Saylor at the helm, MicroStrategy has amassed around 129,200 BTC bought at an average price of $30,700, or about $3.96 billion in total. It is the largest holding of bitcoin by any publicly traded company.
But the value of the stash dropped to $2.97 billion after the price of BTC tumbled more than 17% in a day to $23,000 on Monday.
That’s a loss of just under $1 billion for the Nasdaq-listed company, which provides business intelligence, mobile software, and cloud-based services.
MicroStrategy is now at risk of liquidation should the BTC price fall below $21,000, according to analysts. The company borrowed billions of dollars to buy bitcoin. In March, it used its BTC holdings as collateral to take out a $205 million loan with Silvergate Bank in order to buy even more bitcoin.