Corporate Bitcoin
Treasury bonds are added to the purchase pressure at this time, but a strong fall in the price of the world’s cryptocurrency could lead to forced liquidations, said the Estandonal analyst Geoff Kendrick in a research report on Tuesday.
Up to 61 companies that quote on the stock market have adopted cryptocurrency as a treasure asset, and these companies now have a combined bitcoin of 673,897 at the end of May, or 3.2% of the total cryptocurrency supply, according to the report.
That large number, of course, owes almost everything to Michael Saylor’s strategy (Mstr), which alone has a total of 580,955 tokens.
“According to Example 2022 of Core Scientific (Corz), we estimate that prices more than 22% below average purchase prices could lead to liquidations,” Geoff Kendrick, head of digital asset research at Standard Chartered, wrote.
In the bearish market of that year, Bitcoin’s miner under considerable financial pressure sold 7,202 bitcoins in June 2022 at an average price of $ 23,000 to raise around $ 167 million.
“The forced sale price (forced in the sense that creditors would no longer finance the Core Scientific business model) was only 22% below the cost of production,” Kendrick said.
If Bitcoin went back below the level of $ 90,000, half of these Bitcoin Treasury bonds would be underwater, he added.
Read more: Bitcoin to see $ 330b additional corporate treasure tickets by 2029: Bernstein
