Did MicroStrategy Receive Its First Margin Call, For Its Bitcoin Investments?

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In a statement emailed to Reuters, Michael Saylor, CEO of MicroStrategy, one of the largest bitcoin owners, confirmed that the company had not received a "margin call" for its bitcoin-backed loan. Saylor said the company can handle more volatility.

“We can always contribute additional bitcoins to maintain the desired loan-to-value ratio,” he told Reuters. In November of last year, MicroStrategy did just that and added to its holdings of 7,002 BTC which is now expected to happen again.

MicroStrategy is an American company that provides business intelligence, mobile software, and cloud services. The company has gained popularity among the crypto community in the past few years due to its bitcoin accumulation strategy. According to the latest data, MicroStrategy holds over 129,000 BTC.

In a recent tweet, Saylor stated that the company had anticipated market volatility. “When MicroStrategy relied on a strategy to invest in bitcoin, it anticipated volatility and organized its balance sheet so it could continue to hold on to the currency during adversity.”

Bitcoin crash

Since hitting an all-time high of over $68,000 in November 2021, Bitcoin has lost nearly 70% of its value. Amidst the massive sell-off in the market, institutional investors withdrew their money.

“Bitcoin has entered a phase coinciding with the deepest and darkest bear cycles in the past,” Glassnode stated in its report. Prices are barely above the total cost basis as set out in Price Realized, and on-chain volume fundamentals have deteriorated further. Historically, this phase has taken anywhere from 8 to 24 months to pass as the market makes an eventual bottom.”

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