Public companies face massive losses as Bitcoin falls below 80,000 USD

Public companies are facing increasing losses from their Bitcoin reserve strategy (BTC) as the value of this cryptocurrency falls sharply.

This happens when BTC falls below 80,000 USD, sparking a new debate about the risks of corporate investments in cryptocurrency.

Is the Bitcoin reserve strategy backfiring for companies?

This week began with a not-so-promising signal for the cryptocurrency market, with many calling it "Black Monday." According to data from BeInCrypto, Bitcoin has fallen sharply by 9.6% in the past 24 hours, down to 75,089 USD at the time of writing.

The liquidation figures are equally astonishing. According to Coinglass, Bitcoin has experienced the highest amount of liquidation in the same time frame, totaling 474 million USD. Of this, 405.7 million USD came from long-term liquidations, while 68.2 million USD was from short-term liquidations.

Notably, companies holding Bitcoin reserves are not escaping the recent market bloodbath. Many companies are currently facing significant unrealized losses amid the sharp fall of Bitcoin.

According to data from Bitcoin Treasuries, the NGU ratio, which measures the difference between the current value of Bitcoin and the original price of companies' holdings, has turned red for many companies.

This shows that the current market price of Bitcoin is currently lower than the purchase price of many institutional investors. For example, Metaplanet (3350.T) is experiencing an unrealized loss of 12.4% on its Bitcoin holdings. The company currently holds 4,206 Bitcoin, valued at approximately 314.7 million USD, with an average price of each Bitcoin being 85,483 USD.

Similarly, the investment portfolio of The Blockchain Group (ALTBG.PA) fell by 14.4%. Holding 620 Bitcoin worth 46.39 million USD, the company's average price per Bitcoin is 87,424 USD.

Semler Scientific (SMLR) is also affected, with a loss of 14.7% on its investment portfolio. The company holds 3,192 Bitcoin worth 238.9 million USD, with an average price of 87,850 USD per Bitcoin.

Even Strategy (MSTR), one of the pioneers in corporate Bitcoin adoption, is facing challenges. Since it started purchasing Bitcoin in August 2020, the company has accumulated 528,185 Bitcoin, worth 39.5 billion USD, at an average price of 67,485 USD per Bitcoin, resulting in an overall profit of 10.9%.

However, data from SaylorTracker shows that all Bitcoin purchased by the company since November 2024 is currently at a loss. These purchases were made at prices ranging from 83,000 USD to a high of 106,000 USD per Bitcoin.

Meanwhile, the fall in the value of Bitcoin has had a significant ripple effect on the stock prices of companies. 3350.T has seen a sharp decline of 20.2% in its stock price, while ALTBG.PA fell 15.8%.

SMLR only fell slightly by 0.6% but still reflects the overall trend of the market. Finally, MSTR dropped by 11.2% in pre-market trading despite some initial resilience.

Amid this market crisis, Peter Schiff, the economist and long-time Bitcoin skeptic, has targeted Strategy.

"Attention Saylor, now that Bitcoin is below 80,000 USD, if you want to prevent it from falling below your average price of 68,000 USD, you should be ready with borrowed money today and invest it all," he posted on X.

This economist also predicts that the company's Bitcoin strategy could lead to its downfall.

"It will end with the bankruptcy of MSTR," Schiff declared.

He also questioned the value of Bitcoin as a safe-haven asset. Schiff emphasized that the significant fall of this coin compared to other assets makes it an unreliable store of value, especially during market sell-offs.

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