MicroStrategy denies it received a margin call against a $205 million loan that it had backed with Bitcoin.
MicroStrategy’s chief financial officer had previously said that Bitcoin would have to fall to $21,000 for there to be a possibility of a margin call, but that if that happened, it could offer other collateral.
Asked about it on CNBC, Michael Saylor, MicroStrategy’s CEO and founder said, “The margin call thing is much ado about nothing,” and that the company was, “10x overcollateralized,” on its bitcoin-backed loan.
“We feel like we have a fortress balance sheet,” Saylor said. “We’re comfortable and the margin load is well managed.”
MicroStrategy, seen as a proxy for investing in Bitcoin, has seen its shares fall 70% from January.
MicroStrategy held 129,218 bitcoins as of March 31st, at an average price of $30,700. Bitcoin is presently trading at $19,751.80. At current prices, MicroStrategy is closing in on a $1.5 billion loss.
Saylor himself has previously said that Bitcoin prices would have to fall below $3,500 before the company would be required to put up more collateral.
