MicroStrategy May Dump Bitcoin After Massive $5.9B Loss

- $5.91 Billion Valuation Loss for MicroStrategy Due to Bitcoin Volatility - Impact of Bitcoin Price Decline on Corporate Finances [Unblock Media] In recent months, the extreme volatility of Bitcoin prices has become a significant factor affecting corporate finances. Particularly for companies holding large amounts of Bitcoin, such drastic price changes have emerged as a risk factor, substantially impacting the revaluation of their assets and financial health. On January 20, 2025, Bitcoin reached an all-time high of $109,225, but due to global economic uncertainties and trade tensions, its price declined, falling to around $77,000 by April 8. Such price drops directly lead to valuation losses for companies holding Bitcoin as an asset. MicroStrategy is a notable example. The company reported a valuation loss of about $5.91 billion in the first quarter of 2025 alone, which has also impacted investor confidence and its stock price. Some analysts suggest that MicroStrategy might consider selling its Bitcoin holdings, a possibility that cannot be ruled out. In the industry, there are concerns that if MicroStrategy actually proceeds with the sale, it could shock the entire cryptocurrency market in the short term. The exit of a major investor could accelerate price declines, raising further concerns. Thus, the company's strategic decisions are expected to have significant ripple effects across the market. Meanwhile, other companies are adopting various risk management strategies to cope with Bitcoin's high volatility. Some are using hedging strategies through futures contracts, while others are diversifying their portfolios to spread the risk. These approaches serve as important reference cases for companies that hold or are considering holding cryptocurrency. As the proportion of Bitcoin as a corporate asset increases, analyzing its volatility and developing risk management strategies are expected to become key aspects of future corporate finance.