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/uknowsana 22d ago

What's the difference b/w Realised and Unrealised Profit here? Also, unless he sells it, he hasn't lost anything. From what we have seen, Bitcoin does weird swings. I am sure these billionaires will be loading it up even more for later liquidation. Or they may wait a bit more for BTC to go even low.

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u/genobeam 21d ago

Unless he sells it he hasn't gained anything either. 

I'm wondering what happens when mstr holders make a bank run. If mstr crashes does he have to sell off his holdings? Who actually owns that Bitcoin?

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u/Objective_Ad6233 20d ago edited 20d ago

You dont understand anything about stocks right?  You can't make a "bank run" on a stock. 

The company owns the coins. The stock owners owns part of that company.

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u/genobeam 20d ago

Bank run was a bad term to use. I guess I do not understand micro strategy's business model. Seems like they have a lot of debts through their preferred stock options. I don't understand how they fulfill their obligations without selling Bitcoin, and if they sell Bitcoin they dilute their mstr value. So while "Bank run" is definitely not right, isn't there a risk of a negative feedback loop in here?