Head of business software behemoth has explained why no margin call threatens it over its Bitcoin stash
Michael Saylor, managing director of MicroStrategy, spoke to CNBC about multiple concerns about a margin call the company may face for loans it recently took out to purchase Bitcoin.
Bitcoin evangelist Saylor explained why these concerns are nothing but talk and trolls getting engagement on social media, but they have brought him a certain benefit.
“A lot of noise for nothing”
Commenting on numerous concerns and rumors about a margin call that MicroStrategy may face if the price of Bitcoin continues to fall, he said the company is in no danger.
The margin call thing is “much ado about nothing,” he stated, quoting the title of a Shakespearean play. However, the benefit is that it has made Michael Saylor Twitter-famous, so he appreciates that, as he said.
The CEO explained that the company had a balance sheet of several billion dollars and that there was only a $200 million loan that it had to guarantee. This can be done easily as MicroStrategy now has 10x oversized on this at the moment.
Earlier, Saylor also shared that they will not face any margin call as long as the loan-to-value (LTV) amount remains below 50%.
In addition, the company’s balance sheet has been structured in such a way that it can withstand extreme volatility more or less comfortably.
“Ideal entry point”
As of now, MicroStrategy owns 129,218 Bitcoins worth approximately $2.8 billion and the company is considering buying more, according to Saylor’s recent interview with CNBC.
Saylor believes that now, with Bitcoin trading around $21,000, this is the ideal point to start building a BTC position to hold for the long term.
