MicroStrategy CEO Michael Saylor has been a vocal Bitcoin advocate, with his company holding 129,218 Bitcoin (nearly $4.1 billion worth) as of its latest quarterly earnings report.
While being the biggest Bitcoin holder among publicly traded companies has its risks, Saylor shared his thoughts on how MicroStrategy could survive a serious bear market.
“If the price of Bitcoin falls below $3,562 the company could post some other collateral,” Saylor wrote on Twitter.
MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx
While the cryptocurrency market crashes and Bitcoin fluctuates near $30,700, which is roughly Microstrategy’s average cost per Bitcoin, Saylor appears to be showing no interest in selling the company’s stash anytime soon.
Details on MicroStrategy's Bitcoin loan. Image: MicroStrategy.
Just a few weeks ago, MicroStrategy announced that its employees would be able to put Bitcoin in their 401(k) plans through Fidelity, an offering that’s already stirred “grave concerns” from the U.S. Department of Labor.
Nevertheless, MicroStrategy seems committed to “hodling” Bitcoin. A week ago, MicroStrategy CTO Phong Lee had said during the company’s quarterly earnings call that, “Essentially, Bitcoin needs to cut in half, or around $21,000, before we'd have a margin call.”
Saylor appears to be ready for far worse.
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