Twitter Turns Against Musk While Tesla’s Bitcoins Are Under Water

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Last Updated on 21 May 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Elon Musk has in the past day come out as voting Republican this year, and Tweets regarding his personae have gotten very negative as a result (which he expected). Business Insider even launched a story claiming that the Tesla CEO was accused of sexually harassing a flight attendant on a private jet back in 2016.

YouTube video

Meanwhile his Bitcoin stash is taking on water because the world’s biggest cryptocurrency now trades below the level he bought it and Musk makes fun of crypto bots together with Dogecoin founder Billy Markus.

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Microstrategy And Tesla’s Bitcoin Stash Are Underwater

Most analysts have been focused on stock markets this week. On top of inflation, rising interest rates, war in Ukraine, crash of the TerraUSD stablecoin and Chinese lockdowns which could hamper the global supply chain, they now also have to worry about the US consumer not willing to purchase quality goods anymore but instead choosing the cheaper version and store brands. Target and Walmart joined tech stocks on a downward trajectory.

With all that, we might have forgotten to check the price of Bitcoin and whether major investors in the world’s biggest digital currency are still making a profit. Unfortunately, some bad news from that front as well.

Saylor and Musk, brothers in Bitcoin arms

A twitter conversation between Michael Saylor and Elon Musk back in December 2020 seems to have convinced the Tesla CEO that it would be a good idea to park some spare Tesla cash into Bitcoin. When he did so in the beginning of 2021, Bitcoin immediately rose 15% in response.

Tesla CFO Zach Kirkhorn said that the purpose was to “get some return” on cash “not immediately being used for operations.” A few weeks later, in a SEC filing (Musk and the SEC famously do not get along), Kirkhorn added a second title to his rank as CFO: “Master of Coin.”

Problem is that Telsa’s bitcoin was bought at $29,400 so for the moment he’s still safe but dipping his toes into losses I would say.

Far worse it is now for Microstrategy and Michael Saylor. Even thought the margin calls for a loan of $250 million we reported on only start kicking in if Bitcoin drops below $21,000, Microstrategy total Bitcoin stash is already losing.

As SEC filings showed in Q1 of this year, Microstrategy’s total holdings is 129,218 Bitcoins acquired for $3.97 billion, or some $30,700 per coin.

With Bitcoin today trading at $29k, that means Saylor is underwater. Ouch.