Cloud software company MicroStrategy today announced another Bitcoin This time spend $10 million on cryptocurrency—though the asset’s value has dropped to just under $20,000.
The tech firm has now spent more than $3.98 billion on Bitcoin, and according to the statements of its CEO Michael Sayler, owns 129,699 digital coins. It has also suffered a loss of $1.3 billion since the fall in the currency’s value.
MicroStrategy CTO Fong Lee last month Told Shareholders say the company will face a margin call if the price of bitcoin falls below $21,000. $205 million loan That he bought more BTC in March. The price of bitcoin is currently under $20,000 – down 70% from its November high of $69,000, To CoinMarketCap data.
A margin call occurs when a margin account (a type of account offered by brokerage firms that allows investors to borrow money to purchase other assets) usually runs short on funds due to a losing trade. Is.
In the case of MicroStrategy, a margin call would likely mean forcing shareholders to sell their bitcoin holdings to prevent further losses. but saylor don’t feel worried,
Earlier this month, Microstrategy’s CEO took to Twitter to remind followers (and investors) that the company “anticipated volatility and structured its balance sheet so that it can continue to HODL under adverse conditions.” ” Sayer previously addressed concerns over a margin call in May, assuring shareholders that even if the price of bitcoin continued to fall, his company was “prepared for”.post some other collateral,
Even as the crypto winter sets in, the tech CEO is firmly convinced that bitcoin will increase in value in the long run.
MicroStrategy kicks off its bitcoin buying spree in 2020 when it was initially Spent $250 million on assets. frequent seller postponed The largest and oldest cryptocurrency as a “safe haven” asset and “digital gold”.
But bitcoin has been closely related to the US stock market-exclusively technical stocks-2022 more than anything else, and shed 57% ($521 billion) of its market cap since January this year, and has taken a beating this year.
MicroStrategy stock was down 5.21% today, trading at $176.42 per share.
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