The three Bitcoin whales posted losses of a few hundred million dollars on their portfolios due to the recent market crash.
While markets seem to be recovering this Friday, investors got scared as significant digital assets registered a massive fall earlier this week. With Bitcoin crumbling down below $30,000 and other assets crashing behind, many investors started to show losses; and the great whales also got included in the event.
Bitcoin, the most significant digital asset by market capitalization, fell to lows not seen since 2020, when it slipped as low as $26,350 on Thursday, according to data from CoinMarketCap. The drop, amid a widespread collapse in the global digital currency market, translates to a 60% correction from its all-time high of $68,000, registered in November 2021.
Counting the Losses
Investors who purchased Bitcoin around last year’s bull run have seen their profits vanish since then. Especially this 2022, a period that, to date, has been remarked by huge volatility.
But even those who acquired the currency before its rally towards 2020 could now struggle with a red portfolio. The bets of some of the principal investors in the market will go counted here, such as MicroStrategy, the enormous institutional whale of Bitcoin, and El Salvador, the first country in the world to save reserves in digital assets.
El Salvador
The Central American nation, which became the first nation worldwide to accept Bitcoin as legal tender last year, has been gathering a massive wealth from the digital asset.
The strategy, conducted by the Salvadoran president, Nayib Bukele, relies on the direct purchase of Bitcoin and its consolidation through the mining activity. This week, the most recent investment got revealed in 500 BTC for USD 30,744 per coin.
MicroStrategy’s story
MicroStrategy, an enterprise software entity, began acquiring Bitcoin in August 2020 as part of a strategy to minimize its cash holdings and manage the fiat inflation panorama presented by the COVID-19 pandemic. The firm kept purchasing bitcoins steadily, making a wealth registered at 129,218 BTC.
The firm’s CEO, Michael Saylor, is a great enthusiast and defender of Bitcoin. In the past, he showed his enthusiasm for the leading digital asset due to its deflationary nature, saying it brings a better haven than gold.
Tesla
The investment in Bitcoin of the electric car company managed by billionaire Elon Musk has failed to bear fruit this week. Tesla first revealed in February 2021 that it had acquired $1.5 billion worth of Bitcoin. According to a file issued with the US Securities and Exchange Commission, the purchase happened between January and early February.
Although there is no information about the number of bitcoins held by Tesla, calculations based on these figures suggest that Tesla could have recorded a loss of around 20%, which possibly translates to a few hundred million dollars.
By: Jenson Nuñez
