MicroStrategy’s CEO Hinted that the Company’s Bitcoin Would Not be Sold

MicroStrategy CEO Michael Saylor took to Twitter on Tuesday morning to allay fears that his company’s bitcoin-backed loans may face liquidation if the price of bitcoin continues to fall. “MicroStrategy has a $205 million term loan and needs to maintain $410 million as collateral,” Saylor said, linking to his company’s Q1 2022 investor presentation. Michael Saylor suggests that @MicroStrategy will never sell its #Bitcoin pic.twitter.com/oRFG4sKewU — CryptoCurrency News (@CryptoBoomNews) May 10, 2022 MicroStrategy owns 129,218 BTC. However, 115,109 BTC remain unencumbered and might be used as extra collateral if necessary. This amount of bitcoin would be enough to prevent a margin call if the bitcoin price stayed over $3,562 despite the loan’s $410 million collateral demand. Saylor added that even if that level were breached, the corporation would not sell. In the same tweet, he stated, “If the price of BTC falls below $3,562, the company could post some other collateral.” The software analytics firm took out a $205 million loan in early April to buy more bitcoin as the price began to fall — its first-ever bitcoin-backed loan. MicroStrategy paid $190.5 million for 4,167 bitcoins at an average price of $45,714 per bitcoin. The 11.6 percent drop in bitcoin price on Monday aroused concerns about whether Silvergate Bank, the company’s lender, would issue a margin call shortly. During the fall, MicroStrategy’s bitcoin investment brie...