Ipoh Community Forums

Full Version: Bitcoin’s plunge spells trouble for the dot-com era entrepreneur who went all in
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
  • A $4 billion bet on bitcoin by software firm MicroStrategy is in jeopardy after the cryptocurrency’s recent plunge.
  • The dot-com bubble-era firm’s bitcoin stash is now worth $2.9 billion, translating to an unrealized loss of more than $1 billion.
  • MicroStrategy is now faced with a possible margin call that investors fear could force the company to liquidate its bitcoin holdings.

[Image: 107051661-1650986786982-gettyimages-1239...&ffmt=webp]

Having once lost $6 billion at the height of the dotcom bubble, software entrepreneur Michael Saylor is no stranger to volatility in the financial markets.

In 1999, MicroStrategy, Saylor’s software firm, admitted to overstating its revenues and erroneously reporting a profit when it actually made a loss. The fiasco shaved over $11 billion off MicroStrategy’s stock market value in a single day.

Now, more than two decades later, MicroStrategy is again facing questions over some of its accounting practices — this time in relation to a $4 billion bet on bitcoin.

- More -