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by brian_cloutier 1822 days ago
Your answer only rephrases the question. The only way for it to hit $0 is if nobody is willing to buy the stock. This seems unlikely, given that the Bitcoin they're holding, even at 50% of present value, is still worth significantly more than $0.
2 comments
jonnydubowsky 1822 days ago
Microstrategy's average cost of bitcoin is $26,080.

If the price of Bitcoin fell 50% from today's price of $36,404 it would be at $18,202.

They would be down $7878 on their cost per bitcoin, under 30% loss on their total investment.

https://www.cnbc.com/2021/06/21/microstrategy-owns-over-3-bi...

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mjol 1822 days ago
The losses from their bitcoin position can exceed their current market cap.
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vidarh 1822 days ago
Their Bitcoin holdings seems to add up to about half their current market cap, so that seems to make no sense.

EDIT: From [1]:

> “As of June 21st, 2021, MicroStrategy holds an aggregate of approximately 105,085 bitcoins, which were acquired at an aggregate purchase price of approximately $2.741 billion and an average purchase price of approximately $26,080 per Bitcoin, inclusive of fees and expenses.”

From [2]:

> Market cap: $6.08 Billion

So ~half, and average purchase price is still substantially below current BTC price.

[1] https://dailyhodl.com/2021/06/23/michael-saylors-microstrate...

[2] https://companiesmarketcap.com/microstrategy/marketcap/

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