MicroStrategy Down 46% YTD, Will Get Margin Called if BTC Falls Below $21k
Microstrategy could face a margin call over its Bitcoin-backed loan if the Bitcoin price drops below $21,000.
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USDC$0.9996-0.01%
XRP$1.10-1.88%
SOL$69.40-3.23%
TRX$0.329-1.01%
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RAIN$0.0157-2.06%
LEO$9.49-0.84%
ZEC$413.84-6.89%
XLM$0.1911-3.05%
BTC$62,686.00-1.67%
ETH$1,666.62-3.16%
USDT$0.9987-0.01%
USDC$0.9996-0.01%
XRP$1.10-1.88%
SOL$69.40-3.23%
TRX$0.329-1.01%
FIGR_HELOC$1.03-0.16%
HYPE$61.30-7.24%
DOGE$0.0789-3.56%
USDS$0.9997+0.00%
RAIN$0.0157-2.06%
LEO$9.49-0.84%
ZEC$413.84-6.89%
XLM$0.1911-3.05%
MicroStrategy's Bitcoin strategy was hailed as bold, but the company comes under fire as all markets come crashing down.
Microstrategy could face a margin call over its Bitcoin-backed loan if the Bitcoin price drops below $21,000.
MicroStrategy's BTC-backed interest-only loan was issued by Silvergate Bank's SEN Leverage platform.
Microstrategy purchases an additional 660 Bitcoins, bringing its total holdings to ~125,051 BTC.
MicroStrategy doesn't think it's fair to investors to include BTC impairment loss in financial statements.
As Bitcoin dipped over the weekend, shares of crypto firms and companies with exposure to Bitcoin also dropped in line with the leading digital asset.
Due to heavy Bitcoin investments from the firm, MicroStrategy shares had acted as a proxy ETF for some investors.
MicroStrategy now owns more than 0.5% of Bitcoin's circulating supply. Even with BTC's price rising, Saylor continues to buy.
With amounting positive news for Bitcoin, Microstrategy continues to add more BTC to their balance sheet.
In Saylor's view, the USD will not only succeed over the next decade—but it will do so with the help of Bitcoin.
Microstrategy's stock price soared pretty much the entire last year as Bitcoin sustained its rally.
The Federal Reserve makes sure that Bitcoin’s scarcity is not the only major factor driving its price upward.
If 22% percent of all USD ever printed was increased this year by the Fed, are we heading for hyperinflation?