Michael Saylor, MicroStrategy stick to their guns on Bitcoin, MIAMI, FLORIDA - JUNE 04: MicroStrategy CEO Michael Saylor speaks at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida. The crypto conference is expected to draw 50,000 people and runs from Friday, June 4 through June 6th. (Photo by Joe Raedle/Getty Images),

Michael Saylor, MicroStrategy stick to their guns on Bitcoin

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MicroStrategy CEO Michael Saylor says the company will not have a margin call on their US$205 million Bitcoin-backed loan after their crypto holdings dropped by over US$1 billion over the past week, according to data from CoinGecko

See related article: MicroStrategy, crypto firm shares plunge with Bitcoin’s freefall

Fast facts

  • When MicroStrategy adopted a Bitcoin (BTC) strategy, it anticipated volatility and structured its balance sheet so that it could continue to hold through adversity, Saylor said on his verified Twitter page
  • The company is the largest publicly traded holder of Bitcoin, and has a three-year US$205 million term loan with Silvergate Bank.
  • In May, Saylor tweeted that MicroStrategy has 115,109 BTC that it can put up as additional collateral to avoid a margin call, as long as the price of BTC stays above US$3,562. 
  • The dot-com era billionaire has continued to be vocal in his support of Bitcoin, and on Tuesday, he told his 2.5 million followers to “stack sats and stay humble” in a tweet, referring to market lingo to accumulate more Bitcoin. 
  • Most of MicroStrategy’s assets are in BTC, and its stock price has moved in tandem with its prices, down over 70% in the past six months. 
  • The company had about US$2.2 billion in total debt, US$44 million in annual interest expenses, and its business revenues have fallen 3% year-over-year, according to its latest quarterly report.

See related article: MicroStrategy posts Q1 revenue loss amid falling Bitcoin price

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