MicroStrategy CEO Michael Saylor says the company will not have a margin call on their US$205 million Bitcoin-backed loan after their crypto holdings dropped by over US$1 billion over the past week, according to data from CoinGecko

See related article: MicroStrategy, crypto firm shares plunge with Bitcoin’s freefall

Fast facts

  • When MicroStrategy adopted a Bitcoin (BTC) strategy, it anticipated volatility and structured its balance sheet so that it could continue to hold through adversity, Saylor said on his verified Twitter page
  • The company is the largest publicly traded holder of Bitcoin, and has a three-year US$205 million term loan with Silvergate Bank.
  • In May, Saylor tweeted that MicroStrategy has 115,109 BTC that it can put up as additional collateral to avoid a margin call, as long as the price of BTC stays above US$3,562. 
  • The dot-com era billionaire has continued to be vocal in his support of Bitcoin, and on Tuesday, he told his 2.5 million followers to “stack sats and stay humble” in a tweet, referring to market lingo to accumulate more Bitcoin. 
  • Most of MicroStrategy’s assets are in BTC, and its stock price has moved in tandem with its prices, down over 70% in the past six months. 
  • The company had about US$2.2 billion in total debt, US$44 million in annual interest expenses, and its business revenues have fallen 3% year-over-year, according to its latest quarterly report.

See related article: MicroStrategy posts Q1 revenue loss amid falling Bitcoin price