{"id":2715,"date":"2022-01-28T10:46:40","date_gmt":"2022-01-28T09:46:40","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=2715"},"modified":"2022-01-28T10:46:44","modified_gmt":"2022-01-28T09:46:44","slug":"the-crypto-selloff-wiped-7-billion-off-corporate-balance-sheets","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2022\/01\/28\/the-crypto-selloff-wiped-7-billion-off-corporate-balance-sheets\/","title":{"rendered":"The Crypto Selloff Wiped $7 Billion off Corporate Balance Sheets"},"content":{"rendered":"\n<div>\n<p class=\"cyhZ9\">Publicly traded companies have gotten bullish on Bitcoin. That may have cost them. At least 26 public corporations are holding bitcoin on their balance sheets, according to <a href=\"https:\/\/qz.com\/2116509\/crypto-isnt-a-safe-haven-during-high-inflation\/\">data compiled by cryptocurrency analytics firm CoinGecko<\/a>. Since <a href=\"https:\/\/qz.com\/2116509\/crypto-isnt-a-safe-haven-during-high-inflation\/\">the price of cryptocurrencies began to plummet<\/a> in November, they\u2019ve collectively lost nearly $7 billion.<\/p>\n<p class=\"cyhZ9\">The price of <a href=\"https:\/\/ancstockinvestments.com\/blog\/2021\/11\/13\/will-bitcoin-price-rise-continue-into-2022-inflation-fears-grow\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bitcoin<\/a> peaked above $67,000 on Nov. 8,\u00a0 but has since fallen 46%. Corporate crypto holdings for the largest 26 totaled at least $14.7 billion at the height of the rally. As of Jan. 26, they\u2019re worth $8 billion.<\/p>\n<p class=\"cyhZ9\">The companies\u2014which include electric carmaker Tesla, financial services startup Square, and South Korean video game developer Nexon, along with a slew of crypto miners, exchanges, and investment firms\u2014hold 217,240 bitcoin. That\u2019s a little more than 1% of all the bitcoin in the world.<\/p>\n<p class=\"cyhZ9\">But the drop in value hasn\u2019t shaken the convictions of the largest corporate crypto holder, MicroStrategy. The Virginia-based company, which develops business intelligence software, <a href=\"https:\/\/www.virginiabusiness.com\/article\/microstrategy-converts-250m-cash-holdings-to-bitcoin\/\">began buying bitcoin in August 2020<\/a> on the conviction that the cryptocurrency would hold its value better than the US dollar in the long run. In the midst of the selloff, MicroStrategy CFO Phong Le <a href=\"https:\/\/www.wsj.com\/articles\/microstrategy-to-continue-buying-bitcoin-despite-market-tumble-cfo-says-11643106608\">vowed that the company would keep buying bitcoin<\/a>. \u201cOur strategy with bitcoin has been to buy and hold, so to the extent we have excess cash flows or we find other ways to raise money, we continue to put it into bitcoin,\u201d he told the Wall Street Journal.<\/p>\n<p class=\"cyhZ9\">But not every corporation has MicroStrategy\u2019s <a href=\"https:\/\/www.dictionary.com\/e\/slang\/diamond-hands\/\">diamond hands<\/a> commitment to crypto. Square, the payments company owned by ex-Twitter CEO and Bitcoin evangelist Jack Dorsey, <a href=\"https:\/\/www.cnbc.com\/2020\/10\/08\/square-buys-50-million-in-bitcoin-says-cryptocurrency-aligns-with-companys-purpose.html\">bought $50 million worth of bitcoin<\/a> in October 2020 and <a href=\"https:\/\/www.cnbc.com\/2021\/02\/23\/square-buys-170-million-worth-of-bitcoin.html\">another $170 million worth of bitcoin in February 2021<\/a>. By May 2021, Square\u2019s bitcoin had lost $20 million of its value and the company <a href=\"https:\/\/www.barrons.com\/articles\/square-bitcoin-51620997374\">swore off buying any more of the digital asset<\/a>.<\/p>\n<h2 class=\"et6CV\">Most corporate bitcoin holders are still ahead on their investments<\/h2>\n<p class=\"cyhZ9\">Despite bitcoin\u2019s latest freefall, most companies that bought the cryptocurrency have still made an overall profit on their investment. That\u2019s because the companies didn\u2019t buy all their bitcoin at its peak price on Nov. 8. The biggest winners, like MicroStrategy, started buying bitcoin before its price skyrocketed at the end of 2020.<\/p>\n<p class=\"cyhZ9\">Later adopters like Tesla, which <a href=\"https:\/\/www.cnbc.com\/2021\/02\/08\/tesla-buys-1point5-billion-in-bitcoin.html\">bought $1.5 billion worth of the cryptocurrency<\/a> between January and February 2021, took advantage of small dips in bitcoin\u2019s price during its 2021 surge. Those that did lose money on their bitcoin investment, like Nexon, started buying into the cryptocurrency near the peak of its value. Nexon\u2019s poorly timed purchase has already caused the company to <a href=\"https:\/\/www.gamesindustry.biz\/articles\/2021-08-11-nexon-blames-missed-profit-projection-on-bitcoin\">write off part of its investment and miss quarterly profit targets<\/a>.<\/p>\n<\/div>\n\n<p><a href=\"https:\/\/qz.com\/2118130\/the-crypto-selloff-wiped-7-billion-off-corporate-balance-sheets\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Publicly traded companies have gotten bullish on Bitcoin as the crypto selloff has already wiped up to $7 billion off corporate balance sheets. <\/p>\n","protected":false},"author":5,"featured_media":2716,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,3,10],"tags":[29,30],"series":[],"ppma_author":[533],"class_list":["post-2715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-investments","category-stock","tag-bitcoin","tag-cryptocurrency"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Crypto Selloff Wiped $7 Billion off Corporate Balance Sheets<\/title>\n<meta name=\"description\" content=\"Publicly traded companies have gotten bullish on Bitcoin as the crypto selloff has already wiped up to $7 billion off corporate balance sheets.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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