MicroStrategy Close To Margin Call As Bitcoin Crashes To $21K
Bitcoin (BTC) price has dropped by a massive 25% in the past 7 days. This price action has increased trouble for MicroStrategy Inc which is holding huge amounts of BTC in its portfolio.
BTC drops to $21,033
The world’s largest cryptocurrency, BTC went on to dip and touch the $21,033 price level on Tuesday. However, it soon recovered to regain the $22K price level. Dropping below the $21k level may have caused the software firm a margin call.
According to a report, MicroStrategy which holds 129,218 Bitcoins said that if the token’s price drops below a certain price level then it would need to add to its pledged $205 million loan. Meanwhile, Michael Saylor, CEO of the software firm cleared the company’s plan over collapsing BTC price. He mentioned that they adopted a strategy that anticipated volatility. It helped them to structure their balance sheet so that they could hold the token through adversity.
Firm holds 129,218 BTCs
Saylor has been very open about the company being linked with Bitcoin. It was one of such first that went on to buy and add Bitcoin to its treasury. The software firm’s share prices fell by 1.4% in pre market trading. However, it is up around 2.5% since the market opened for trading.
Bitcoin is trading at an average price of $22,203, at press time. BTC has now been falling for the 8 days straight. It is down by 4% in the last 24 hours. The report added Phong Le, MicroStrategy’s president, earlier said that Bitcoin needs to be cut in half by around $21K before they have a margin call.
MicroStrategy is holding 129,218 Bitcoin. It has average pricing calculated to be $30,700 each. According to CoinGecko, the firm has an entry value of $3.97 billion. However, its today value stands at $2.86 billion.
- John Bollinger Sees ‘W’ Bottom Forming in Ethereum and Solana, Not Bitcoin
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
