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Bloomberg has released an article that discusses the importance of large companies reporting previously accepted cryptocurrencies.
It's time for Bitcoin’s corporate champions to account for a brutal selloff in the cryptocurrency https://t.co/QEq8HCAFLG
— Bloomberg (@business) July 26, 2021
The Price of the question
This refers, in particular, to the largest companies, Tesla and MicroStrategy. According to the publication, the above-mentioned companies have previously officially announced the introduction of Bitcoin as a means of payment. This list also includes Square.
The situation with Tesla
Recall that, according to the first-quarter report, Tesla received a profit of 128 million dollars from the sale of tokens. According to Elon Musk, this step was taken to demonstrate the liquidity of the first cryptocurrency.
Nevertheless, the market value of Tesla fell in the second quarter due to unjustified forecasts about the electric car market situation. Some Wall Street analysts believe the company's intervention on Bitcoin may have also contributed to this.
MicroStrategy situation
As for MicroStrategy, it made Bitcoin a central part of its venture altogether. The situation got to the point where the company began advertising bonds to finance purchases.
The company spent just over $2.25 billion on tokens, with the entire process taking place under the personal direction of CEO Michael Saylor.
Report time
Now Bloomberg writes that it is time for these companies, which had cryptocurrency assets, to report on it. The process for Tesla and MicroStrategy will occur next week. Square, on the other hand, will report in August.
Experts also responded to this event. Thus, accounting analyst and founding father of R.G. Associates Jack Kesielski said that price volatility will have an impact this quarter.
The impact of Bitcoin's falling price
Bloomberg also draws attention to the fact that the price of Bitcoin fell 41 percent in the second quarter of 2021. The disclosure of this, however, is more likely to result in some write-downs by firms.
However, it is noted that firms are still able to make huge gains if they previously offered any of the digital currencies at a higher value than they originally paid for it.