{"id":26526,"date":"2022-05-10T16:29:56","date_gmt":"2022-05-10T20:29:56","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=26526"},"modified":"2022-05-10T16:30:06","modified_gmt":"2022-05-10T20:30:06","slug":"michael-saylor-reassures-investors-after-btc-mstr-market-crash","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/michael-saylor-reassures-investors-after-btc-mstr-market-crash\/","title":{"rendered":"Michael Saylor reassures investors after $BTC, $MSTR market crash"},"content":{"rendered":"\n
Michael Saylor, CEO of MicroStrategy<\/a> is confident that his company's BTC holdings will more than cover any prospective margin call on Bitcoin-backed loans.<\/h5>\n\n\n\n
\"Michael
Michael Saylor reassures investors after $BTC, $MSTR market crash<\/figcaption><\/figure><\/div>\n\n\n\n

In 2021, the American corporate intelligence and software behemoth made headlines by making a series of significant Bitcoin bets. MicroStrategy's decision to convert its treasury reserve into BTC assets was influenced by Saylor.<\/p>\n\n\n\n

In early May, global markets suffered significant losses, and Microstrategy's stock was not spared. The value of $MSTR has dropped by 24%, and the value of Bitcoin has also dropped significantly, along with the larger cryptocurrency markets<\/a>.<\/p>\n\n\n\n

This is concerning because MacroStrategy, the company's subsidiary, took out a $205 million loan from Silvergate Bank in March 2022, with a portion of MicroStrategy's Bitcoin used as collateral. The funds were subsequently used to continue MicroStrategy's BTC acquisition strategy.<\/p>\n\n\n\n

If the price of Bitcoin falls too low, the Silvergate loan will be called due to the value of the collateralized asset falling.<\/p>\n\n\n\n

It was a hot topic on the business's May earnings call, with CFO Phone Le admitting that the company would have to sell some Bitcoin if the price fell below $21,000.<\/p>\n\n\n\n

\n

MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> has 115,109 BTC that it can pledge. If the price of #BTC<\/use><\/svg><\/span><\/a> falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODL<\/use><\/svg><\/span><\/a>https:\/\/t.co\/9WHsIB6Usx<\/use><\/svg><\/span><\/a><\/p>— Michael Saylor (@saylor) May 10, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

On May 10, Saylor turned to Twitter to reassure investors about MacroStrategy's<\/use><\/svg><\/span><\/a> capacity to repay its loans, which required $410 million in collateral.<\/p>\n\n\n\n

Saylor highlighted that the firm would have to run out of BTC if the value of Bitcoin fell below $3,562 in order to run out of collateral to service the loan.<\/p>\n\n\n\n

The corporation made headlines in August 2021 when it decided to invest a significant percentage of its capital in Bitcoin.<\/p>\n\n\n\n

It made its initial $250 million investment after meeting its shareholder responsibilities, giving the business 21,454 BTC for its treasury holdings.<\/p>\n\n\n\n

Saylor stated at the time that the investment was motivated by the company's opinion that Bitcoin <\/a>is “a dependable store of wealth and an appealing financial instrument with greater long-term appreciation potential than holding cash.”<\/p>\n\n\n\n

Saylor was even more adamant, insisting that Bitcoin was a better investment than fiat currency and that the corporation had made Bitcoin its primary asset in its treasury reserve plan.<\/p>\n\n\n\n

In September 2020, MicroStrategy made another significant Bitcoin purchase, this time for $175 million, adding another 16,796 Bitcoin to its portfolio.<\/p>\n\n\n\n

From there, the company proceeded to buy BTC, prompting CitiBank <\/a>to downgrade MicroStrategy's shares from ‘neutral' to ‘sell' following its intention to make Bitcoin its principal treasury reserve asset.<\/p>\n","protected":false},"excerpt":{"rendered":"

Michael Saylor, CEO of MicroStrategy is confident that his company’s BTC holdings will more than cover any prospective margin call on Bitcoin-backed loans. In 2021, the American corporate intelligence and software behemoth made headlines by making a series of significant Bitcoin bets. MicroStrategy’s decision to convert its treasury reserve into BTC assets was influenced by […]<\/p>\n","protected":false},"author":12,"featured_media":7989,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83],"tags":[],"class_list":["post-26526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/08\/Bitcoin-is-Hope-For-Canada-Michael-Saylor.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/26526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=26526"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/26526\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/7989"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=26526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=26526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=26526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}