MicroStrategy CEO Michael Saylor does not need a margin call that would trigger its "Bitcoin Loan" that the company used to safeguard when the cryptocurrency crashes in the coming future. However, that said future has already happened in the market as the many top coins already say massive drops, with Bitcoin reaching as low as $20,800 earlier this week.
MicroStrategy CEO Is Not Going for a Margin Call, BTC Loan
(Photo : Joe Raedle/Getty Images)
MIAMI, FLORIDA - JUNE 04: MicroStrategy CEO Michael Saylor speaks at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
According to Bloomberg, the business intelligence company's CEO said it would not need to rely on a potential margin call for a Bitcoin loan during these challenging times. The loan would boost the company's finances as their investments mostly entered the cryptocurrency industry, which recently saw a crash.
It is a lifeline set by the company, and it would have its Silvergate loan, which MicroStrategy previously worked on, available during times like these when Bitcoin is at its lowest. A potential margin call may happen when the crypto dipped to $21,000, which recently dropped to $20,800.
Saylor said that it is bringing in its collateral to keep the Silvergate loan at bay and avoid the said margin call.
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Cryptocurrency Crash: Bitcoin's Downfall?
CoinMarketCap saw a massive drop in Bitcoin in the past days, showing a 30 percent drop in the past seven days and a four percent drop in the past 24 hours. Currently, it sits at around $21,600, whereas it previously saw a drop to $20,000.
Bitcoin: MicroStrategy's Belief
There is a massive change in the cryptocurrency industry at present, and it is because the market displayed a significant crash that lost almost half of its valuation to most top coins in the industry. What Bitcoin is experiencing now is "extreme market conditions," and it is how the experts address its status.
It is extreme because it dipped below the supposed safety net it set before, focusing on the $29,000 lifeline that would have massive changes when it falls below that price. It is happening now, and it alarms experts and those that trade the coin in the current times.
Saylor previously said that he suggested the idea of a Bitcoin investment from its USD holdings to Elon Musk, saying that the money would earn more there, and it is an idea that the S&P Global 500 companies would soon follow.
MicroStrategy and Saylor are holding on to whatever funds they have left as the company is not considering the margin call on its allotted Bitcoin loan from a partner bank. It is their decision, and they would do everything in their power to keep its company afloat, despite the Bitcoin problems now in which they have massive stakes invested.
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Written by Isaiah Richard
