Michael Saylor Responds to Bitcoin $21,000 Margin Call

Michael Saylor Responds to Bitcoin $21,000 Margin Call

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Michael Saylor Responds to Bitcion $21,000 Margin Call

Bitcoin is trading at $30,800 at the time of writing. The flagship cryptocurrency is struggling to keep the $31,000 resistance, with pundits and analysts calling for Bitcoin to drop to $20,000. Some are calling for as low as $10,000, while of course, the Bitcoin haters and detractors are calling for it to plummet to $0. It was only on April 20th that Bitcoin was trading for $40,000 but with rising interest rates, geopolitical turmoil, and economic instability worldwide, the sudden drop to $30,000 now makes the calls for $20,000 more believable.

A $20,000 Bitcoin price is a far cry from the $68,991 from November of 2021. And it has been reported that one of the biggest bulls and advocates of Bitcoin, Michael Saylor, would be in trouble if Bitcoin fell below $21,000. First reported by fortune.com, MicroStrategy’s CFO Phong Le revealed in the company’s first-quarter earnings call on Tuesday that if Bitcoin’s price falls below $21,000, or around 50% from current levels, it will be forced to pony up more cryptocurrency to back its $205 million Bitcoin-collateralized loan with Silvergate Bank that was used to buy Bitcoin in the first place.

Microstrategy started buying Bitcoin in August 2020, when Bitcoin was trading in the $11,500 range. After its initial $250 Million acquisition of Bitcoin, Microstrategy’s stock rose tremedendously and Michael Saylor became a celebrity and a major voice in the Bitcoin community. Microstrategy has been on a buying spree ever since buying Bitcoin as it rose and at various dips. According to SEC filings for the first quarter, Microstrategy added another $215 million worth of Bitcoin at an average purchase price of $44,645 per coin in the first quarter ​​bringing its total holdings to 129,218 Bitcoins acquired for $3.97 billion, or $30,700 per coin.

While reports stated that $21,000 would due Saylor in for a margin call, Michael Saylor came forward himself to give clarity on the situation. Saylor tweeted out;

MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLstatutes
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