TLDR

  • Strategy’s chief executive asserts the company’s balance sheet remains secure unless Bitcoin’s price stays under $8,000 for five years.
  • Charles Hoskinson has incurred over $3 billion in unrealized crypto losses but does not intend to sell his holdings.
  • South Korean exchange Bithumb accidentally sent Bitcoin to users, sparking market volatility and regulatory probes.
  • The crypto market has experienced steep declines, with major holders like MARA Holdings shifting millions worth of Bitcoin.

Strategy CEO Phong Le stated the company’s balance sheet will remain stable unless Bitcoin’s price falls to $8,000 and stays there for five years. During a recent earnings call, Le informed investors that at this price point, Strategy’s Bitcoin reserves would equal its net debt— a scenario that could push the company to consider restructuring or securing new funding.

Despite challenges from price volatility, Le expressed confidence in Strategy’s long-term strategy. “We’ve structured the company’s reserves with a long-term perspective in mind,” he noted. Strategy reported a net loss of $12.6 billion in the fourth quarter, primarily driven by unrealized Bitcoin losses. While short-term fluctuations affect its finances, the company continues to prioritize its ongoing Bitcoin treasury strategy.

Strategy Executive Chairman Michael Saylor stressed that the company is designed to weather significant Bitcoin price drops. He urged investors to focus on positive fundamentals, such as improving regulatory conditions for cryptocurrencies. Additionally, Saylor dismissed worries about quantum computing’s impact on Bitcoin, labeling such fears “misinformation.”

Charles Hoskinson Reports $3B Loss in Crypto Holdings

Cardano founder Charles Hoskinson revealed his personal crypto portfolio has seen over $3 billion in unrealized losses. Despite the value drop, Hoskinson stated he has no plans to sell his crypto holdings. Speaking from Tokyo during a livestream, he addressed the broader market downturn and emphasized his dedication to the crypto industry’s long-term growth.

“I’ve lost more than $3 billion, but I’m not here for the money,” Hoskinson explained. “Cashing out would have been simple, but I’m in this for the long term.” He added that while market conditions could deteriorate, crypto enthusiasts and builders should stay persistent. His remarks came as Cardano’s token (ADA) fell by over 11%, marking a 92% decline from its 2021 all-time high.

Bithumb Mistakenly Sends Bitcoin to Users, Causing Market Disruptions

South Korean crypto exchange Bithumb encountered a major issue when it accidentally transferred extra Bitcoin to some users. The mistake led to a brief price swing as recipients reportedly sold the unintended Bitcoin. The error happened during a promotional giveaway: users were supposed to receive 2,000 Korean won, but some got 2,000 Bitcoin instead.

Bithumb’s internal systems quickly identified the transfers and restricted the impacted accounts. The exchange reassured users that no hacking or security breach occurred. However, some users managed to sell the mistakenly credited Bitcoin before restrictions were imposed.

The incident led to a temporary 15% drop in Bitcoin’s price on the platform, and South Korean regulators are now investigating the matter. Local media reports indicate around 3 billion Korean won was withdrawn as a result of the error.

MARA Holdings Moves $87 Million in Bitcoin Amid Crypto Selloff

MARA Holdings, a leading Bitcoin miner, transferred approximately 1,317 Bitcoin (valued at roughly $87 million) across various wallets and exchanges as part of its response to the ongoing market slump. The largest transfer involved moving more than 660 Bitcoin to an address linked to digital asset manager Two Prime. Smaller sums were sent to other unidentifiable wallets.

These transfers come as Bitcoin’s price briefly fell to $60,000, leading to substantial losses for mining firms like MARA. The company’s stock dropped by nearly 19%, mirroring the broader market downturn. Mining profitability has been squeezed by price declines, with daily Bitcoin mining revenue falling sharply over the past two weeks.