Bitcoin slumps, ARK makes T loss of nearly $6 million, Tesla nears cost price, 6 listed companies invest in total loss of $70 million

At the moment, the profit of listed companies investing in bitcoin outweighs the loss.

Bitcoin slumps, ARK makes T loss of nearly  million, Tesla nears cost price, 6 listed companies invest in total loss of  million

In mid-February 2021, we looked at the profitability of public companies’ bitcoin holdings when the currency was at $52,000, with MicroStrategy being the biggest gainer, bringing in $2.5 billion in profit from its bitcoin holdings. Ruffer Investment was the next largest, with nearly $900 million in profits in just 3 months.

However, bitcoin is not in an “eternal bull market”. on May 19, the price of bitcoin plummeted by as much as 31.17% in a single day, declining from a high of $64,800.

Due to listing rules, it is difficult for public companies to sell high and sell low in a short period of time like ordinary users. So how have the public companies that previously made huge profits from their bitcoin holdings fared in this decline? We at BlockBeats have compiled the following information.

Note: The current price of bitcoin in this article will be calculated at $36,500.
ARK booked a loss of about $6 million in 2021 from buying and selling GBTC

We counted ARK’s purchases and sales of GBTC since 2021. 2021 saw ARK buy a net of about 740,000 shares of GBTC, accumulating 2.946 million shares bought and 2.205 million shares sold. Based on the daily closing price of GBTC, we can calculate that the current cost of capital for the 740,000 shares of GBTC is $28.16 million, however, based on the current $30.1 per share of GBTC, ARK has a book loss of approximately $5.866 million.

Of course, if the negative premium on GBTC decreases (currently at 18.24%), ARK’s book loss on GBTC in 2021 will be further reduced.

Bitcoin Price Nears Tesla’s Holding Cost Price, Mito Loses $15 Million

Currently, the public company with the largest number of bitcoin holdings as well is MicroStrategy, which holds 92,000 of them and is currently worth $3.36 billion, with a $1.1 billion profit on its books.

Unlike most public companies, MicroStrategy does not buy bitcoins with its own funds, but rather raises funds through a convertible bond issue. As a result, MicroStrategy is more sensitive to the price of bitcoin, which could prompt MicroStrategy to sell off bitcoin if the price of bitcoin falls below MicroStrategy’s average cost of ownership for an extended period of time.

The second largest publicly traded company holding bitcoin is Tesla, which currently holds about 38,400,000, worth $1.4 billion, and has a book profit of about $72.6 million. Previously, Tesla sold some of its bitcoin in the first quarter for a net profit of $101 million, so if this profit were counted, Tesla would have made a profit of $174 million.

Square, Marathon Digital Holdings, Hut 8 Mining Corp, Riot Blockchain, Voyager Digital LTD, Coin Citadel, BIGG Digital Assets, Advanced Bitcoin Technologies AG, DigitalX, Mode Global Holdings, and Net Holding Anonim Sirketi are all currently holding bitcoin for less than the current bitcoin price.

In addition, NEXON, Seetee AS, Meitu, Phunware, and BlackRock are holding bitcoin at a cost higher than the current bitcoin price.

Of these, NEXON has the largest book loss at around $37.32 million. This is a South Korean gaming giant that has a number of well-known games under its belt such as Run Kart, Dungeons & Dragons, CS OL, and Crossfire. It also previously announced that it will acquire a 65% stake in Bithumb, one of the largest trading platforms in Korea.

Some of the listed companies have not announced their buying costs, so it is impossible to estimate, but we have calculated the current value of their bitcoin holdings as follows.

At this point, listed companies are making more profits than losses on their bitcoin investments, although it should be taken into account that even after a 45% drop from its highs, bitcoin is still up about 25% from its $28,900 price at the beginning of the year.

Posted by:CoinYuppie,Reprinted with attribution to:
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