Bitcoin even at $3.6k can’t impact term loan on MicroStrategy, CEO noted
The Chief executive officer of Microstrategy shared some interesting things about the term loan of the company and Bitcoin’s defensive strength.
Microstrategy is a business intelligence firm, which is a public company. This company is very bullish on Bitcoin under the leadership of Michael Saylor, who is the CEO of this company. The company currently holds 129,218 BTC on its balance sheet. In the last few years, the company purchased huge Bitcoins at every significant correction in Bitcoin price but this year Bitcoin buy rate by this company plunged.
On 10 May, By quoting the company’ Q1 2022 investor presentation, Micheal Saylor tweeted that the company currently has a $205 million loan and for the same, the company is required to maintain $410 million worth of assets.
Right now the company is holding a total of 129,218 BTC and out of these 115,109 BTC are under the free situation, which can be used by the company with full independent decisions. If this amount of Bitcoin remains above $3,562 then in that situation Microstrategy will not be required to add another asset to maintain $410 million.
In the same tweet thread, Micheal wrote about this fact and noted that Bitcoin is enough for the company.
“If the price of BTC falls below $3,562 the company could post some other collateral.”
In the current situation, it is almost impossible for Bitcoin to go below even $25k. So here term loan on Microstrategy is not going to be a headache at any point, thanks to the diamond hands of the company.
In the last few days, the crypto market faced huge corrections in the prices. In particular, Bitcoin faced an 11%+ downfall in the price on 10 May and it was expected that people, who invested in Microstrategy’s shares, may face fear if Microstrategy will get margin calls from Silvergate Bank, the lender.
Read also: NewYork based digital media company purchased $5M worth of Bitcoin
