Original link: https://www.hellobtc.com/kp/du/06/3961.html
Author: Terry / Source: Vernacular Blockchain
Author | Terry
Produced | Vernacular Blockchain (ID: helloBTC)
On June 13, Celsius, the crypto-borrowing agency, announced that it would suspend operations such as withdrawals, and then its related addresses accumulated more than 6,000 WBTC in MakerDAO in just two days, reducing the liquidation line corresponding to Bitcoin borrowing positions all the way down to $16,852.
At the same time, the price of Bitcoin, which has already fallen sharply below $30,000, also broke through the cost line of many large institutions holding Bitcoin, and even approached the previous bull market high of $200 million.
Will the downturn in Bitcoin price caused by the “Celsius Crisis” become the last straw that crushes the institutions, and will it cause the dominoes of the institutions to liquidate their positions in a series?
To understand this question, we can briefly review the current position cost and position amount of large institutions holding bitcoin positions.
01
MicroStrategy Betting Big on Bitcoin
According to the position data of the master institutions on the Ouke cloud chain, aside from CEX as the custodian, the main body of the company currently holding more than 100,000 bitcoins, except for Block.one and the long-defunct Mt.Gox, ranked third The first place is MicroStrategy.
As the old home of Bitcoin, MicroStrategy’s buying and buying of Bitcoin has long been a big-ticket strategy. The news of its public purchase of Bitcoin can be traced back to August 11, 2020:
According to the asset allocation strategy formulated in its second quarter 2020 financial report, it spent $250 million to purchase 21,454 bitcoins, which means that its initial purchase cost is about $11,652 per bitcoin.
Then in mid-September 2020, it announced that it would buy 16,796 bitcoins for $175 million, and stated that it would use bitcoin as the main reserve asset. Since then, MicroStrategy has started an uncontrollable road of accumulation. .
The last public purchase of MicroStrategy was between February 15th and April 4th this year, buying 4,167 bitcoins for about $190.5 million, an average of $45,714 per bitcoin.
MicroStrategy announced its financial report for the first quarter of 2022 on May 3, Beijing time. The financial report shows that the company currently holds a total of 129,218 bitcoins, with an average cost of $30,700. Calculated at the current price of $22,000, the floating loss of the position is about $1 billion.
But while the current secondary market price is well below its cost price, MicroStrategy has $205 million in term loans and needs to maintain $410 million as collateral, according to a May disclosure by MicroStrategy CEO Michael Saylor , and it has 115,109 BTC to pledge, so MicroStrategy’s bitcoin may face liquidation only if the price of bitcoin falls below $3,562.
02
Tesla that is still “Hold”
Elon Musk first expressed interest in buying Bitcoin on December 20, 2020, after Microstrategy’s Michael Saylor suggested that other CEOs follow his lead.
Shortly after, in late January 2021, Musk changed his Twitter profile to #Bitcoin , and Tesla Inc. finally announced a $1.5 billion bitcoin purchase in February 2021.
Tesla then reduced its bitcoin holdings by 10% in the first quarter of 2021, which according to Musk was “a test of liquidity, proving that bitcoin is liquid enough to make it a cash replacement on the balance sheet” .
According to Tesla’s financial report in the first quarter of this year, Tesla’s bitcoin holdings remained unchanged at 42,000, while Tesla spent a total of $1.328 billion, which is its average bitcoin per bitcoin. The purchase cost is $31,620, and the current $22,000 has lost 30%.
Although Tesla has not bought or sold 90% of the bitcoin held on its balance sheet in the past four quarters, there is no guarantee that Musk will not choose in the second quarter of this year. Sell bitcoins.
If the financial report at that time confirmed the news of Tesla’s liquidation, it would undoubtedly be a heavy blow to the encrypted secondary market.
03
“The Believer” Block (Square)
Block (formerly known as Square) is another company founded by former Twitter CEO Jack Dorsey. As early as 2014, Block officially opened the use of Bitcoin, and in 2018, it first allowed its customers to buy Bitcoin.
Block made a $50 million investment in Bitcoin in October 2020, and has invested in Bitcoin several times since then, and revealed in its fourth-quarter 2020 earnings statement that it added another $170 million in Bitcoin.
Up to now, the number of bitcoins held by Block has reached 8,207, and the holding cost is also the lowest among the several institutions in this article, which is about 27,407 US dollars, but it is still unable to escape the fate of floating losses – according to the price of 22,000 US dollars, the floating loss has been about 20 %.
However, since Jack Dorsey has always been a “well-known old gun” in the Bitcoin community, and is almost the most staunch Bitcoin supporter among the traditional Internet elites, Block can basically be regarded as a “faith” that will not be easily sold in the short and medium term. By”.
In March 2021, the company’s CFO Amrita Ahuja said in an interview with Fortune magazine that in the future, every company will have bitcoin on its balance sheet, which is absolutely justified, while reiterating Block’s long-term holding of bitcoin. promise.
04
El Salvador was beheaded
On September 7, 2021, El Salvador officially designated Bitcoin as legal tender, including the launch of the electronic wallet Chivo and the deposit of $30 in Bitcoin for each of the residents who downloaded the wallet.
I believe that many friends also have the impression that almost every time the crypto market falls sharply, the President of El Salvador will come out to give everyone a booster, announcing that El Salvador has purchased xxx more bitcoins.
Under the blessing of this round of “bottom-hunting”, El Salvador has accumulated 2,301 BTC so far, with an average purchase price of around US$45,100. According to the current price of US$22,000, the current floating loss is about 50%. The amount is about 50 million US dollars.
However, the Minister of Finance of El Salvador stated at the beginning of this month that he “will not sell the purchased Bitcoin”, and two days ago also said that the financial risk brought by the collapse of Bitcoin is minimal.
05
summary
In general, $30,000 is almost a critical watershed. At least from the current situation, whether it is MicroStrategy, Tesla or El Salvador and Block, the secondary market price of Bitcoin has fallen below its cost price, holding positions. El Salvador, which has the highest cost, has a floating loss of more than 50% (calculated at the current US$22,000):
And apart from Tesla, at least the other three holders do not seem to have the motive or need to sell Bitcoin eagerly, which may not be good news – after all, when the “bear market” is getting louder today, The bear market seems to have really come, especially when Bitcoin fell below the institutional cost line brought about by the “Celsius Crisis”, which has largely triggered everyone’s “crypto Lehman moment” panic.
In general, take what you take, and take it all in one place. Institutional buying positions that were once seen as big bulls in the bull market now seem to be the last straw that crushes the market.
But no matter how seamlessly the good and the bad switch, the story of Bitcoin will continue to be told, but the next wave may have a new protagonist.
This article is reprinted from: https://www.hellobtc.com/kp/du/06/3961.html
This site is for inclusion only, and the copyright belongs to the original author.