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Bitcoin FALLS below $80k. Concerns for MSTR
By Davide Grammatica
Bitcoin's continuous bearish movement worries investors, but especially Strategy's, with MSTR down 10% in 24 hours
Could Michael Saylor make a loss?
The collapse of Bitcoin that began last week, causing BTC to lose over 10% in 7 days and about 3.3% in just 24 hours, worries investors in the crypto world and beyond.
The implications of a continuous bearish movement could be many and include the risks arising from the difficulties of Strategy (formerly known as MicroStrategy) of Michael Saylor on the stock market.
After a drop of 5.57% on Friday, March 7, MSTR is still suffering from BTC’s difficulties, recording -11% in 24 hours. Saylor’s company, which wants to offer its customers the advantages of investing in BTC without having direct ownership, is suffering more than any other company from the weakness of the first cryptocurrency, and many are now wondering what the risks might be.
As we know, Strategy is the largest corporate holder of BTC, some of which was purchased at a price close to the asset’s ATH. For this reason, concerns are beginning to circulate regarding a position that could become a loss.
A difficult situation for Strategy
The average purchase price of Bitcoin by Strategy is estimated to be, according to BiTBO, around $62,500, while for Lookonchain it would rise to $66,400. In other words, the company would still have a good margin before ending up in a situation of unrealized loss, but still not enough to put investors at ease.
Bitcoin’s performance, in turn, is not supported by the stock market, which is also struggling with the problems arising from Trump’s new trade policy (i.e. the new tariffs imposed on Mexico and Canada). And the announcement of a new national strategic reserve in Bitcoin does not seem to have been able to compensate for investors’ insecurities.
On the contrary, in some ways the whole affair could also be detrimental to Strategy, whose business model could suffer from new alternatives to gain exposure to the cryptocurrency market.
