Microstrategy after Tesla: Large Institutions are on a BTC Selling Spree!

Tesla, MicroStrategy, and Block owned about 85% of Bitcoin held by public companies

Tesla, MicroStrategy, and Block's bet on Bitcoin (BTC) led to a combined loss of US$5 billion on the books in the second quarter, Bloomberg News reported on July 22. According to the report, Bitcoin's 59% decline during the quarter led to staggering losses for these companies based on their previous holdings disclosure. Data on massive sale activity offers contradictory indicators just as Bitcoin is finally holding onto the US$23,000 mark. It is commonly known that the biggest institutional Bitcoin investor is Michael Saylor's Microstrategy.

Data from Crypto Quant, meanwhile, raises the possibility that the business is allegedly offloading some of its Bitcoin assets. It's also possible that the provider of business intelligence services may soon disclose the selling activities. According to reports, the alleged primary Microstrategy wallet is thought to have already sold 132,382 Bitcoin, per yourdefiguide on Crypto Quant. It is believed that the aforementioned wallet, 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ, belongs to Michael Saylor's business.

CEO of Singapore-based market maker Presto Labs Yongjin Kim agreed with Lunde that liquidations from 3AC and others caused the significant price drop in June but believes the BTC price will return to US$30,000 within the next few months.

He told Cointelegraph on Thursday that "those liquidations pushed Bitcoin price below the fundamental equilibrium price," leading him to believe that prices will return "to US$30,000 in the next few months."

As Bitcoin price fell below US$20,000 in June, with prices around US$18,700 on June 30, the three firms' combined losses were around US$5 billion. The quartet had owned roughly 85% of the BTC held by public companies in the quarter, with 70% of the paper losses marked on MicroStrategy.

Saylor has previously said his company has not sold its Bitcoin, but investors are likely to be keen on seeing this reflected in the company's Q2 earnings report on 2 August. Block is also set to release its results on 4th August.