MicroStrategy has no plans to liquidate its cryptocurrency reserves. According to Chief Executive Michael Saylor, for the firm not to run short of digital assets to back loans, the price of Bitcoin would have to fall below $3,562.
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
In April, Saylor described the policy of buying bitcoin as successful.
Earlier the company released its financial results for Q1 2022. During the reporting period, revenue was $119.3 million with expenses of $298 million. The latter figure included $170.1 million attributed to a negative revaluation of its digital assets.
MicroStrategy holds 129,218 BTC on its balance sheet — more than $4 billion at the time of writing. Of these, 115,109 BTC are held in MacroStrategy’s reserves. 95,643 BTC the company counts as ‘unspent’.
On May 9, amid a crypto market rout, MicroStrategy slid by more than 25%. On May 10, in premarket on Nasdaq the securities recovered some of the decline, but after the regular session opened, quotes fell again.
At the time of writing, the shares were trading near $216.
In April, Saylor described the policy of buying bitcoin as successful.
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