Businessman Martin Shkreli, who amassed a fortune by speculating on drugs in the U.S., promised to sell shares of MicroStrategy and raise the price of Bitcoin to $250,000.
The value of MicroStrategy's securities has fallen below $300. Will we get rid of them and increase the price of Bitcoin to $250,000 without Saylor? The best thing Saylor can do is to accumulate [Bitcoins], wrote Shkreli.
Martin made this statement after on December 31, the stock price of MicroStrategy broke through the support barrier at $300 and dropped to $293. The firm's assets decreased in value despite another Bitcoin purchase worth $209 million. It is clear that the downward trend was caused by the drop in BTC prices that began on December 17.
MicroStrategy continued to invest in Bitcoin when the cryptocurrency's value exceeded $95,000. Currently, BTC is valued at $92,450, so the last six purchases of digital assets have resulted in unrealized losses of $615.6 million for the company. However, considering past transactions, investments in BTC have brought MicroStrategy a profit of $13.5 billion (48.4%). The organization currently owns 446,400 Bitcoins worth $41.3 billion.
The last six Bitcoin purchases by MicroStrategy
Economist Peter Schiff, who criticizes MicroStrategy's business strategy, warned the company's shareholders about the risks of default. If Bitcoin drops significantly in price, it will cause a crash in the organization's stock price, and MicroStrategy employees will be unable to repay the debt on the convertible bonds issued by the institution to raise the capital needed to purchase BTC.
