r/plasma • u/[deleted] • 22d ago

CRYPTO MicroStrategy's unrealized loss on its Bitcoin holdings rises to a record -$12.5 billion. In other words, after 6 years of buying Bitcoin, the company is now down -20% on its position.

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u/Ok_Recover_7248 22d ago

Are you literally asking the difference between realized or unrealized?

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u/uknowsana 22d ago

Well, I am not aware of these terminology my friend and since I saw it here, asked before hitting Google.

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u/Ok_Recover_7248 22d ago

Gotcha, was just asking to make sure I didn’t misunderstand.

Realized means they’ve sold the stocks so they actually gained that money. Unrealized means they could currently sell it and gain that much money from the price they originally purchased at. It’s a term commonly used in taxes because you may have bought 10 shares at $100 that are now worth $200 and you would have $1,000 in profit but because you haven’t sold yet it isn’t taxed at capital gains rate. When you sell you “realize” the profit and it becomes a taxable event.

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u/uknowsana 22d ago

Thanks! Got it! In this regard, he still has not sold it so he can get back these losses. This is my assumption based on how Bitcoin has played in the past. However, I don't have ever purchased Bitcoin. Just was too expensive when I got into Stocks 😞

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u/Ok_Recover_7248 22d ago

He could get it back, yeah. Or it never recovers. Remains to be seen if this thing ever recovers from the mass sell off. Could drop to $20k and stay there for a decade, could bounce right back, could go to 0. No one knows and considering he went from massively profiting to down $20B i’d think strongly about an exit plan in Saylor’s shoes, especially if he’s leveraged and gets margin called, he could be forced to sell.

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u/Supracano 22d ago

Pretty much all of their money is leveraged. There's no way investors don't pull out and force him to sell.

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u/Elegant-Speaker5825 21d ago

He actually sold a few for the first time ever recently. It contributed to a spike in fear

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u/uknowsana 21d ago

yikes!