MicroStrategy Acquires Another 480 Bitcoins, Bringing Its Total To 129,699 BTC
According to a recent tweet from the MicroStrategy CEO of Michael Saylor’s company, another chunk of Bitcoin valued at around $10,000,000 has been bought.
The software intelligence juggernaut paid an average of $20,817 for each Bitcoin. The corporation currently has 129,699 Bitcoins in storage that are valued close to $4 billion.
MicroStrategy buys more Bitcoins despite liquidation gossip
Recent reports have suggested that the largest known corporate holder of bitcoins may face pressure because it used leverage to buy bitcoin earlier this year. Remember that a MicroStrategy affiliate had used a $205 million credit line to purchase more coins. Since a portion of MicroStrategy’s bitcoin holdings are used as collateral for the loan, there is a magnified risk if the price of bitcoin falls below $21,000.
CEO Michael Saylor has recently stated that the company may be able to provide additional collateral in order to prevent liquidation, which is what is thought to have happened when Bitcoin fell below the margin call threshold for the credit line.
For MicroStrategy’s whole bitcoin investment to be at risk of liquidation, the price of bitcoin needs to fall to about $3562, according to Saylor.
Earlier this month, CEO Michael Saylor dispelled rumors that the company is facing a margin call over its Bitcoin stash, calling it “much ado about nothing.” However, these multiple rumors have made him Twitter-famous, he admitted, so he appreciates them.
Saylor noted that the only loan that has to be collateralized for the Bitcoin they now hold is a $200 million loan on its balance sheet, which is worth several billions of dollars. The CEO claims that they can easily execute it because the business has already overcollaterated on it by 10 times.
Saylor informed the neighborhood before the CNBC interview that the company won’t be subject to a margin call as long as the loan-to-value ratio stays below 50%.
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