Bitcoin has dropped below the $80,000 mark, intensifying concerns over institutional holdings, particularly for MicroStrategy. The cryptocurrency's price decline, which has exceeded 30% in recent weeks, is testing the resilience of major institutional investors. MicroStrategy, holding 712,647 Bitcoins at an average cost of $76,037, faces narrowing unrealized gains as Bitcoin trades around $78,000.
Despite the downturn, MicroStrategy's Executive Chairman Michael Saylor signaled continued investment in Bitcoin, raising the dividend on its Series A preferred shares to 11.25% to attract capital. However, analysts warn that sustained low prices could pressure the company's cash flow. Meanwhile, spot Bitcoin ETFs, holding 6.5% of the circulating supply, are experiencing net outflows, exacerbating market volatility as their average purchase cost remains significantly above current prices.
Bitcoin Falls Below $80K Amid Institutional Pressure
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