Microstrategy’s current BTC reserve suffers from a value loss of over $1 billion.
Microstrategy’s SEC filing revealed the company will be investing $500 million from the sales proceeds of its stocks in Bitcoin. The institutional giant has entered into an agreement with BTIG and Cowen and Company and will sell its $500 million worth of Class A stocks to them.
MicroStrategy has to buy the dip as its current Bitcoin holdings of 129,699 BTC stand at an overall loss of $1 billion. The holdings were purchased at an aggregate price of $3.977 billion, the value of which has now dipped to $2.8 billion. This development coincided with Bitcoin’s price rally to $21k.