Crypto Volatility Or Margin Call Not A Problem, Says MicroStrategy
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US software developer MicroStrategy Inc said it has not received a margin call against a bitcoin-backed loan and can withstand further volatility.
US software developer MicroStrategy Inc said it has not received a margin call against a bitcoin-backed loan and can withstand further volatility, soothing market jitters after the token's slide raised fears of asset liquidation. When @MicroStrategy adopted a #Bitcoin Strategy, it anticipated volatility and structured its balance sheet so that it could continue to #HODL through adversity. https://t.co/rPSUVPHUVw
MicroStrategy, an aggressive investor in the highly volatile cryptocurrency bitcoin, borrowed $205 million from crypto bank Silvergate Capital Corp in March, with the three-year loan mostly secured against some 19,466 bitcoins.
Should the price of bitcoins drop below about $21,000, that would trigger a "margin call" or demand for extra capital, MicroStrategy President Phong Le said in a webcast in May.
Bitcoin fell below that level to $20,816.36 on Tuesday before steadying near $22,000. The company said via email that it had not received a margin call.
