Corporate bitcoin
Treasury bills add to the purchase of pressure at the moment, but a sharp decline in the price of the world cryptocurrency could lead to forced liquidations, the analyst with standard Charter Geoff Kendrick said on Tuesday in a research report.
Up to 61 listed companies have adopted cryptocurrency as a treasury ratio, and these companies now have 673,897 Bitcoin combined at the end of May, 3.2% of the total cryptocurrency offer, according to the report.
This large number, of course, owes almost everything to Michael Saylor’s strategy (MSTR), which in itself holds in itself a total of 580,955 tokens.
“Based on the 2022 example of Core Scientific (CORZ), we estimate that prices of more than 22% lower than the average purchase prices could lead to liquidations,” wrote Geoff Kendrick, manager of digital asset research at Standard Chartered.
On the bear market this year, the minor Bitcoin under considerable financial pressure sold 7,202 bitcoins in June 2022 at an average price of $ 23,000 to collect approximately $ 167 million.
“The forced sale price (forced in the sense that creditors no longer finance the Core Scientific business model) at only 22% below the cost of production,” said Kendrick.
If Bitcoin was to go back below the level of $ 90,000, half of these Bitcoin vouchers would be underwater, he added.
Find out more: Bitcoin to see an additional $ 330 billion in business cash flow by 2029: Bernstein
