MicroStrategy In Trouble: Bitcoin Holdings Cause Unrealized Loss of $1 Billion

Recently, in June 2022, microstrategy microstrategy - Business Intelligence , the data analytics firm and one of the largest Bitcoin holding organizations in the world, revealed that the firm had made another purchase of around 480 Bitcoins worth $10 million.

MicroStrategy, the firm that started its Bitcoin holding in August 2020, currently holds 129,699 Bitcoins.

However, as Bitcoin is experiencing a downward trend after the asset lost its $23,000 range, the analytics firm has been hit with unrealized losses affecting the company’s shares drastically. 

While MicroStrategy’s Q2 earnings reports are scheduled to be revealed next week, jefferies jefferies - Financial Service Provider , the investment banking firm, downgraded the company’s stocks from hold to underperform. Nevertheless, there are no updates yet from the company.

An analyst at Jefferies, brent thill brent thill Brent Thill Business AnalystDirector , claims that one of the reasons for MicroStrategy’s present situation is the company’s inefficiency in working on its business intelligence.

The firm has yet to disclose its strategy toward its Bitcoin holdings as it would be challenging to hold on to them during the ongoing bearish market sentiment, especially in the last couple of months.

On the other hand, MicroStrategy’s status degradation from hold to underperform given by Jefferies has negatively impacted the company’s share price. The firm’s share price has declined around 6.50% in pre-market trading.

Michael Saylor In Support Of Bitcoin

Meanwhile, MicroStrategy’s CEO and founder, Michael Saylor Michael Saylor   Michael Saylor is a co-founder of Strategy (formerly MicroStrategy). Before founding Microstrategy, he was a rocket scientist and studied aeronautics and astronautics at MIT on an Air Force scholarship. He dubs Bitcoin 'Digital Gold'.   He made some early investment in Bitcoin as soon as he realized it was going to be the next big thing in shaping decentralized finance from traditional finance. His firm Strategy has made Bitcoin their primary treasure reserve.   Quick Facts   Full Name Michael J. Saylor Birth 04-02-1965 in Lincoln, Nebraska Education BSc from MIT Marital Status To be updated / Unmarried Nationality American Net Worth $8.4B (Feb. 20205, Refer for realtime)   As per Forbes, Saylor bought another 17,732 bitcoins for $175 million in October 2020. Forbes covered Michael Saylor on its front page and called him "The Bitcoin Alchemist" as the latter's Net Worth hit a whopping $7.6B in January 2025.   Michael Saylor – Career Timeline   1983–1987: Studied Aeronautics & Astronautics and Science, Technology & Society at Massachusetts Institute of Technology (MIT). 1989: Co-founded MicroStrategy (Strategy). 1998: MicroStrategy IPO – Took MicroStrategy public on the NASDAQ at $12 per share. 2000: Accounting Scandal & Crash – MicroStrategy's stock plunged 62% in a day due to an accounting misstatement, wiping out billions in valuation. 2004–2019: MicroStrategy Rebuilds – Worked towards cloud-based analytics and AI-driven business intelligence, regaining stability. 2020: Bitcoin Strategy & Investment – Led MicroStrategy’s $425M Bitcoin investment. He made it the first publicly traded company to adopt Bitcoin. 2021: Bitcoin Evangelism – Became one of Bitcoin’s most vocal advocates, encouraging corporations and institutions to adopt BTC and blockchain. 2022: Stepped Down as CEO – Transitioned to Executive Chairman to focus entirely on Bitcoin strategy.   With a major focus on blockchain network growth, Saylor is considered one of the architects in shaping the growth of decentralized finance.   Useful Links to connect with Michael Saylor   Platform Link to connect Twitter (X) Michael Saylor MicroStrategy (Strategy) Official Website MicroStrategy Michael Saylor’s YouTube Channel https://www.youtube.com/c/MichaelSaylor Hope.com (Bitcoin Education by Saylor) Bitcoin is Hope     msaylor@microstrategy.com EntrepreneurCrypto and Blockchain ExpertAuthor , has always been a Bitcoin proponent and has spoken in favor of the asset several times. In the latest interview as well, Michael Saylor was seen forecasting a bull run for the Bitcoin price.

At the time of reporting, Bitcoin is selling at $21,370, with a surge of 1.29% over the last 24hrs.

According to the reports, in June, MicroStrategy saw an unrealized loss of around $1 billion owing to the bearish trend.