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If you are a shareholder, why would you sell on a loss?
by phasnox 5y ago
If you are a shareholder, why would you sell on a loss?
- mjol 5y agobecause $MSTR will go to $0 a share if BTC loses another 50%
- brian_cloutier 5y agoYour answer only rephrases the question. The only way for it to hit $0 is if nobody is willing to buy the stock. This seems unlikely, given that the Bitcoin they're holding, even at 50% of present value, is still worth significantly more than $0.
- mjol 5y agoThe losses from their bitcoin position can exceed their current market cap.
- vidarh 5y agoTheir Bitcoin holdings seems to add up to about half their current market cap, so that seems to make no sense. EDIT: From [1]: > “As of June 21st, 2021, MicroStrategy holds an aggregate of approximately 105,085 bitcoins, which were acquired at an aggregate purchase price of approximately $2.741 billion and an average purchase price of approximately $26,080 per Bitcoin, inclusive of fees and expenses.” From [2]: > Market cap: $6.08 Billion So ~half, and average purchase price is still substantially below current BTC price. [1] https://dailyhodl.com/2021/06/23/michael-saylors-microstrategy-now-owns-over-100000-btc-with-new-purchase/ https://dailyhodl.com/2021/06/23/michael-saylors-microstrate... [2] https://companiesmarketcap.com/microstrategy/marketcap/ https://companiesmarketcap.com/microstrategy/marketcap/
- deleted 5y ago[deleted]
- jonnydubowsky 5y agoMicrostrategy's average cost of bitcoin is $26,080. If the price of Bitcoin fell 50% from today's price of $36,404 it would be at $18,202. They would be down $7878 on their cost per bitcoin, under 30% loss on their total investment. https://www.cnbc.com/2021/06/21/microstrategy-owns-over-3-billion-worth-of-bitcoin-after-new-purchase.html https://www.cnbc.com/2021/06/21/microstrategy-owns-over-3-bi...