Microstrategy investors question CEO on margin calls over bitcoin loan

Michael Saylor, chair and CEO of Microstrategy, has weighed in on concerns that his company’s bitcoin-backed loan from Silvergate could be margin called by stating his willingness to put up even more bitcoin to maintain its position. By Saylor’s math, Bitcoin would have to drop below $4,000 before the company would need other collateral in the event of a margin call.

Saylor wrote that the company had an additional 115,109 BTC that it could pledge to maintain the necessary $410 million in collateral on its $205 million loan if needed. He also wrote that bitcoin’s price would have to fall to $3,562 before the company would need to post other collateral.

Last March, MacroStrategy, a fully-owned subsidiary of MicroStrategy, took out a $205 million loan from Silvergate Bank to buy more Bitcoin. Investors raised questions over the loan during MicroStrategy’s Q1 earnings call, particularly over the possibility of a margin call.


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