$87,466.00
0.84%$2,057.83
0.29%$2.45
0.75%$630.75
-1.99%$142.79
2.15%$0.999895
0.00%$0.192648
4.18%$0.748834
0.55%$0.228647
0.84%$2,055.05
0.32%$87,218.00
0.64%$15.61
2.83%$22.62
4.03%$0.298159
2.41%$9.77
-0.11%$3.62
-1.03%$2,465.68
0.07%$0.00001482
9.62%$1.00
0.05%$0.195106
0.51%$2.50
5.64%$94.41
1.76%$4.64
0.29%$6.74
0.19%$333.29
1.24%$5.02
2.72%$2,059.18
0.27%$0.832274
-9.75%$0.999119
-0.06%$15.70
-2.62%$1.00
0.09%$2,190.24
0.59%$29.19
0.08%$6.94
-0.99%$224.15
1.61%$3.02
2.40%$5.89
-0.99%$0.00000832
3.91%$1.043
0.09%$1.16
-0.07%$50.58
1.16%$6.22
3.20%$0.935526
4.11%$23.94
0.62%$0.104486
-6.65%$0.8441
0.58%$35.10
0.86%$87,480.00
0.89%$184.06
-1.97%$18.36
1.03%$0.997371
-0.11%$11.57
1.05%$0.02688603
2.02%$269.74
1.30%$0.41715
4.42%$4.79
-2.54%$4.08
6.69%$3.63
-1.19%$0.239351
9.03%$3.14
0.66%$0.077453
0.15%$0.615813
4.90%$1.00
0.00%$87,195.00
0.57%$0.393766
1.72%$0.211536
3.72%$4.03
0.09%$6.29
2.96%$1.00
0.03%$0.558372
-0.90%$0.907336
1.00%$0.563123
1.82%$11.31
-0.44%$0.55445
28.59%$87,207.00
0.79%$2,058.37
0.46%$2,143.06
0.57%$0.677072
4.90%$1.16
1.66%$0.073074
-0.88%$78.71
0.58%$0.947302
3.41%$149.09
2.29%$1,313.09
3.27%$0.00001432
4.11%$0.728568
4.43%$10.68
2.53%$0.213906
5.97%$0.999792
-0.00%$2,330.91
0.36%$0.105195
3.23%$1.003
3.24%$17.33
-0.52%$1.06
0.38%$0.998052
0.04%$0.01477972
0.17%$0.580153
1.29%$7.89
3.50%$86,682.00
0.59%$1.00
0.00%$0.01857676
2.32%$2,186.86
0.58%$0.999966
-0.01%$631.00
-1.78%$0.310322
3.49%$0.204658
8.57%$0.724832
1.22%$2.43
7.82%$1.00
0.08%$3,031.68
0.08%$2.48
-7.64%$0.00000072
2.94%$87,317.00
0.91%$35.46
1.68%$0.542733
9.38%$182.90
2.34%$0.42874
0.98%$0.00006846
1.77%$3,027.32
0.04%$0.110315
2.15%$2,143.84
0.49%$0.173165
3.37%$1.001
0.02%$0.01264804
1.07%$3.36
1.14%$156.45
2.18%$18.06
2.52%$0.00645051
3.25%$2.02
5.96%$0.627627
5.84%$0.579593
11.17%$36.64
10.93%$0.00093019
-25.30%$0.755542
3.97%$3.55
1.76%$0.999832
-0.01%$7.91
-1.74%$0.554822
1.06%$7.94
5.37%$19.53
-0.42%$0.49278
2.97%$0.283645
2.17%$0.999634
-0.01%$0.80763
2.61%$0.073801
0.04%$0.803476
0.69%$1.00
0.06%$0.192417
4.38%$85,106.00
0.87%$0.179331
1.59%$2,185.16
0.46%$7.44
1.10%$0.00916109
-2.02%$0.094671
2.39%$2,058.63
0.40%$1.00
0.02%$0.04858708
0.82%$2.86
1.14%$0.00002303
1.69%$0.567767
1.28%$0.4535
-0.66%$0.0072092
2.92%$0.00797854
13.72%$87,571.00
0.98%$2,056.98
0.29%$1.60
9.99%$1.25
0.92%$87,082.00
0.28%$0.00000043
-0.03%$26.04
0.57%$0.5335
1.64%$0.239754
9.20%$2,059.20
0.40%$0.438561
5.57%$110.45
0.01%$0.000002
6.90%$1.002
0.13%$1.08
-0.04%$44.50
0.83%$2,149.39
0.56%$87,165.00
0.70%$0.19428
0.69%$1.091
-0.48%$0.918695
-0.27%$0.03814312
5.98%$2,076.30
-1.93%$2,058.03
0.54%$0.01103873
-2.06%$0.0000664
2.08%$0.00422968
-0.03%$86,889.00
0.97%$0.999114
-0.01%$1.41
-0.92%$0.282986
0.26%$131.67
0.11%$1.44
3.32%$0.289196
2.31%$0.999847
-0.01%$2,045.30
0.47%$2.96
6.02%$1.00
0.06%$1.004
0.06%$4.11
1.98%$1.34
0.76%$0.920988
0.95%$2,058.87
0.32%$0.03085211
0.40%$0.217314
1.10%$1.42
14.16%$0.080818
-1.16%$18.23
-0.29%$24.20
2.08%$2,252.72
0.46%$0.292494
0.61%$1.20
4.50%$2,173.83
0.34%$0.100091
-1.57%$3.06
1.12%$0.288219
8.33%$87,287.00
1.14%$0.03591093
3.27%$0.650621
3.07%$87,458.00
0.87%$0.00272694
3.58%$0.04045876
1.43%$0.00369351
9.08%$2,237.04
0.49%$0.270174
1.53%$0.118769
1.79%$0.587686
13.56%$0.529919
-1.93%$1.001
0.04%$0.034657
1.27%$0.128908
-0.36%$2,058.98
0.18%$0.01319818
1.75%$0.464019
3.48%$0.00286001
7.22%$0.00555432
3.61%$0.755466
3.89%$3,019.97
0.06%$0.640294
2.38%$1,756.61
0.88%$0.00000012
-21.11%$0.33121
10.69%$0.2469
6.32%$0.280579
-1.14%$0.999868
0.06%Reading
Early last month, MicroStrategy CTO Phong Lee reassured concerned shareholders that the biggest BitcoinBitcoin holder among publicly traded companies had nothing to worry about as another Crypto Winter approached. “Essentially, Bitcoin needs to be cut in half, or around $21,000, before we’d have a margin call,” Lee told investors on a quarterly earnings call.
It would appear the once-unthinkable day has already come.
Early this morning, the price of Bitcoin briefly slipped below $21,000, hitting a 52-week low, before recovering to a price of $22,260 at time of writing. The price drop marks a significant line in the sand for MicroStrategy, which took out a $205 million loan in March from Silvergate Bank to stockpile Bitcoin. If BTC falls and stays below $21,000, the event would trigger a margin call on MicroStrategy’s loan, a potentially disastrous event that would require the company to offload tens of thousands of Bitcoins onto the already bearish market. Per the company’s latest earnings report, MicroStrategy currently holds 129,218 BTC.
And yet, this morning, MicroStrategy CEO Michael Saylor took to Twitter to double down on his company’s Bitcoin play, claiming that he and MicroStrategy are ready to weather this market storm, and future ones of far greater severity:
When @MicroStrategy adopted a #Bitcoin Strategy, it anticipated volatility and structured its balance sheet so that it could continue to #HODL through adversity. https://t.co/rPSUVPHUVw
— Michael Saylor⚡️ (@saylor) June 14, 2022
The Silvergate loan requires $410 million in collateral. Per Saylor, even if Bitcoin’s price were to settle below $21,000, triggering a margin call on the loan, MicroStrategy possesses enough additional BTC for collateral. Only if Bitcoin’s price were to fall below $3,562 would that additional BTC supply be insufficient to collateralize the loan. Saylor has previously claimed that in such an event, MicroStrategy has further collateral at its disposal.
Give me a lever long enough and #bitcoin on which to place it, and I shall move the world.
— Michael Saylor⚡️ (@saylor) March 29, 2022
The fact that, just a month ago, MicroStrategy’s CTO attempted to convince shareholders that today’s events would never come, speaks to the current volatility of the crypto market, and the unpredictability of when it will reach bottom.
If the price of Bitcoin ever dropped low enough that MicroStrategy found itself unable to maintain $410 million in loan collateral, the company would be forced to start selling off huge quantities of Bitcoin at once to pay the loan back, an event that would likely further plummet the cryptocurrency’s price, and potentially send disastrous ripple effects across the broader crypto market.
Saylor and MicroStrategy remain assured, at least publicly, that such a day will never come. The market seemed to buy it: the company’s stock is up almost 3% today, after plummeting 54% during last month’s crypto crash.
There’s a wry humor in the fact that Bitcoin has at times been very closely correlated with traditional markets. Bitcoiners generally prefer that BTC not have a high correlation with traditional assets, like stocks and bonds. After all, one of the core tenets of the world’s largest cryptocurrency by market capitalization—$379 billion as of this writing, according to CoinGecko—is that it bypasses traditional finance. That’s why self-avowed Bitcoin fans, like Gemini co-founder Cameron Winklevoss,...
People moving on from the “speculative bubble” that is crypto, NFTs, and meme stocks is a positive sign for the U.S. economy, according to Wall Street heavyweight Ken Griffin. Miami-based trading firm Citadel Securities’ founder said in a Wednesday interview with CNBC that government handouts in 2020, in response to the COVID-19 lockdowns, led to investors pumping their cash into “speculative assets” like NFTs, crypto, and meme stocks. So-called meme stocks, shares of companies that gain a fol...
Institutional investor Bitcoin sentiment turned pessimistic on Friday as short Bitcoin inflows hit an all-time high, according to a new report from CoinShares. Short Bitcoin funds give investors exposure to derivatives, like futures and options, that bet against the price of Bitcoin. While investors can enter into those contracts directly, the CoinShares report tracks the flow of funds for exchange-traded products. By the end of last week, short Bitcoin investment products hit an all-time high...
