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The CEO of “MicroStrategy” clarifies the situation of the company after the Bitcoin drop to the levels of 21 thousand dollars

The CEO of “MicroStrategy” clarifies the situation of the company after the Bitcoin drop to the levels of 21 thousand dollars

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Answer The CEO of “MicroStrategy” clarifies the situation of the company after the Bitcoin drop to the levels of 21 thousand dollars

Michael Saylor, CEO of MicroStrategy, has refuted speculation that his company could face a margin call on its Bitcoin loan.

The Bitcoin proponent has made it clear that such a scenario will not happen as long as the loan-to-value (LTV) ratio remains below 50%.

Before that, Saylor tweeted that MicroStrategy’s balance sheet was structured in a way that beats high volatility.

MicroStrategy has secured a $205 million loan from crypto-focused bank Silvergate Capital in order to fund its bitcoin purchases.

At the time, he told Saylor that his company was able to convert major cryptocurrencies into product collateral after a deal with the bank.

Read:Coinbase intends to launch a dedicated platform for subscriptions (IEO)

MicroStrategy has 129,218 Bitcoins in its vaults, which are worth about $2.8 billion at today’s prices.

Virginia-based MicroStrategy lost nearly $1 billion in a failed bet on Bitcoin.

In May, MicroStrategy’s chief financial officer, Fong Li, warned that the company could face a margin call if Bitcoin drops below $21,000.

Earlier today, the top cryptocurrency fell as low as $20,816 on trading platform Bitstamp.

The company switched to bitcoin in August 2020, adopting the world’s largest cryptocurrency as its primary reserve asset.

The company announced its big bet on Bitcoin just a few months before the start of the Bitcoin rally.

Saylor has managed to return to the spotlight after losing $6 billion badly at the height of the dotcom bubble, and is now one of the most influential voices in the cryptocurrency community.

MicroStrategy’s shares crossed the $1,000 mark for the first time since last February and for the first time since March 2000.

Read:One of the founders of Ethereum: The Ethereum network will improve 1000 times by 2021

However, the rally was not sustainable, and the company’s stock recently erased all of its gains that were driven by Bitcoin.

Read also:

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