Bernd Müller
(Bild: DUSAN ZIDAR / Shutterstock.com)
The largest institutional Bitcoin holder is threatening forced sales – and a stablecoin giant is losing its top rating.
Bitcoin and other cryptocurrencies lost massively in value on Monday. The former lost almost eight percent and slipped to below $84,000. Ether fell even further, losing around ten percent and falling to $2,719.
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This continues a wave of sales that has already lasted for the third month and has caused the overall market to shrink by over a trillion dollars.
It wasn’t just the large cryptocurrencies that were affected: smaller tokens with lower liquidity were particularly hard hit, as was the case with Bloomberg is called. A MarketVector index that tracks the bottom half of the 100 largest digital assets, according to the report, has fallen nearly 70 percent this year.
Strategy under pressure: Reserve against forced sales
The focus of attention is strategy. The company now holds around $56 billion worth of Bitcoin holdings, making it the largest institutional holder of the cryptocurrency.
On Monday, the company drastically lowered its 2025 profit forecast, citing weak Bitcoin performance. The stock then fell loudly Reuters by over ten percent.
To allay fears, the company announced the creation of a reserve of $1.4 billion. This is intended to finance future dividend and interest payments.
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Nevertheless, the concern remains: the company’s so-called mNAV value was around 1.11 on Monday. This metric compares the company value with the value of Bitcoin holdings. If it turns negative, the company could be forced to sell some of its Bitcoin, according to strategy boss Phong Le Bloomberg.
The company’s shares are now around 66 percent below their all-time high from November 2024. Other crypto companies are also feeling the pressure: the shares of the trading platform Coinbase Global fell by six percent.
Stablecoin USDT: Downgrade fuels systemic risks
A decision by S&P Global Ratings brought additional uncertainty. The rating agency rated loudly Reuters The stability rating of Tether (USDT), the world’s largest stablecoin, has been reduced to its lowest level. The reason: A further loss in Bitcoin’s value could result in the token being undercollateralized.
S&P also cited a rise in riskier assets in Tether’s reserves as well as “persistent gaps in disclosure.” Tether itself firmly rejects the downgrade. However, the warning hits a sensitive spot because stablecoins are considered the backbone of crypto trading.
The People’s Bank of China further exacerbated the situation. On Saturday, China’s central bank issued a warning about the risks of virtual currencies, including stablecoins. Government authorities should strengthen cooperation to combat illegal activities, it said.
