Bitcoin price drops 58% to $19,000, other public companies suffering losses

MicroStrategy, Tesla, and other public companies holding Bitcoins have suffered from significant impairment losses as BitcoinBTC closed near $19,000 in the second quarter.

MicroStrategy could have a significant impairment loss of $3.4 billion due to the decline in BTC prices between April and June 2022, according to Bloomberg News.

The company reported $5.9 billion in holdings ofBitcoin at the end of the first quarter.

It's now down to $2.4 billion, representing a 58% drop in value within three months.

MicroStrategy purchased 480 bitcoins for $10 million between May 3 and June 28 and remains committed to its goal ofBitcoin.

At the end of the first quarter, Tesla's holdings — $1.5 billion worth of BTC bought in February 2021 — were valued at $1.2 billion.

The holdings of Tesla fell by around 33% during the second quarter to the current estimated value of $820 million, an impairment loss of over $400 million.

Meitu, a Hong Kong-listed company, has suffered impairment losses on its holdings ofBitcoin and ETH. According to a filing released by the firm, it lost $45.6 million.

The company attributed the loss to the rapid decline in the market for cryptocurrencies.

Meitu hasn't sold any of its holdings of cryptocurrencies.

Another public company that could face impairment losses due to its investment in Bitcoins is Jack Dorsey's Block.

According to available information, the company currently holds over 8000 units ofBitcoin, and a filing in the first quarter of the year revealed that it suffered no impairment loss.

In the second quarter, the value of BTC lost 58% of its value.

CEO Jack Dorsey is a bullish one and recently announced that Block will build a decentralization internet on theBitcoinBlockchain.

The significant unrealized losses for these companies could discourage other investors from buyingBitcoin.

According to the data from CoinSlate,Bitcoin was trading at $19,481 at the time of press time.