Michael Saylor: MicroStrategy may post further collateral for its loan in addition to its 115,000 BTC, if Bitcoin falls below $3,562

Quick take:

  • Michael Saylor clarified that MicroStrategy can back its $205 million loan from SilverGate bank with its 115,109 Bitcoin holdings
  • He also added that Microstrategy may issue “another kind” of guarantee if Bitcoin falls below $3,562.
  • There have been a lot of whispers about Microstrategy getting a margin call on its loan if Bitcoin falls below $21,000.
  • Mr Saylor had joked about working for McDonald’s as Bitcoin crashed below $32,000 and $30,000

Microstrategy CEO Michael Saylor clarified via Twitter that the company’s $205 million loan from Silvergate Bank must maintain a $410 million guarantee. This, in turn, means the company can pledge its entire Bitcoin holdings of 115,109 BTC, currently worth $4.09 billion, as collateral for debt.

Additionally, if the price of Bitcoin falls below $3,562, Microstrategy may “issue further guarantees.” Such a scenario would place the company’s bitcoin holdings at exactly $410 million worth as collateral for the loan. Michael Saylor shared his analysis of the $205 million loan situation via the following tweet.

Talk about Microstrategy Get Margin Called on Loan if Bitcoin Hits $21,000

Saylor’s comments come amid crypto-wide talk of the company getting a margin call if Bitcoin falls below $21,000. The latter figure was mentioned by Microstrategy’s chief financial officer, Phong Le, during the company’s latest earnings call, during which Mr. Le clarified that the company was ready to provide more collateral to cover lending needs. .

Michael Saylor joked about working at McDonald’s

Additionally, the clarification of Microstrategy’s situation with the $205 million comes at a time when Bitcoin has been hit hard by a pullback that saw it fall from $38,000 to a local low of $29,730 in less than 10 minutes. ‘one week. The drop of around 21.7% is particularly concerning, given that Microstrategy and Tesla bought a lot of Bitcoin in this price zone in February 2021.

However, Michael Saylor doesn’t seem too concerned about the negative price action as he recently joked about working at McDonald’s as Bitcoin fell below the $32,000 and $30,000 support levels.