Bitcoin News- Michael Saylor urges investors to be confident on BTC.
- BTC’s current downfall did not affect MicroStrategy drastically.
- MicroStrategy has other plans for collateral besides BTC.
The American business intelligence technology firm, MicroStrategy has been one of the most prominent tech firms in the crypto and the Bitcoin (BTC) industry in terms of investments. MicroStrategy has been dedicated to various investments and holdings on BTC ever since 2021.
Apart from just being any other software tech giant, its active involvement in acquiring BTC indeed catapulted the firm to greater heights. In spite of all this, the major credit for MicroStrategy’s BTC investments and holdings goes to its CEO, Michael Saylor.
Michael Saylor’s vision on BTC and the confidence he has on BTC is far more credible, owing to such investments and BTC holdings. However, with the recent market crash plunging BTC, along with all other prominent crypto’s like the Ethereum (ETH) have put up a big question mark for the future of MicroStrategy.
Most of the investors who have invested in the firm, are currently skeptical in spite of BTC bleeding for the fifth day consecutively. Yet, the CEO remains on with the same confidence as always over BTC.
Other Collateral Besides BTC for MicroStrategy
Accordingly, Michael Saylor posted a tweet a few hours back as a prominent response to all the investors who are in fear over MicroStrategy’s (MSTR) NASDAQ dropping by 24%.
MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx
— Michael Saylor⚡️ (@saylor) May 10, 2022
It’s well known that MicroStrategy has taken a loan of $205 million from the Silvergate bank for acquiring more BTC. This loan was granted to MicroStrategy by pledging few of its BTC holdings. Now if the value of BTC starts to suffer lows, then ultimately either MicroStrategy has to pledge some other collateral or sell up a few BTCs.
Besides, Michael Saylor points out that MicroStrategy has about 115,109 BTCs on hold and can sell them if BTC drops lower. However, he also states that if suppose a point BTC drops dead below $3.5K, then MicroStrategy will be coming up with some other collateral to pledge.
Source: https://thenewscrypto.com/michael-saylor-remains-positive-on-btc-despite-market-crash/