MicroStrategy Boss Dispels Margin Call Rumors as Bitcoin Fails at $23K
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Saylor took to Twitter on Tuesday, noting:
“When Microstrategy adopted a bitcoin strategy, it anticipated volatility and structured its balance sheet so that it could continue to hodl through adversity.”
According to its Q1 presentation, the software company took out a three-year term loan worth $205 million from Silvergate Bank, backed by 19,466 Bitcoins. Early last month, Saylor tweeted that his company “needs to maintain $410 million as collateral” to secure the loan from Silvergate.
MicroStrategy currently boasts one of the largest Bitcoin reserves globally, with a massive 115,109 BTC. Additionally, its crypto division, MacroStrategy, holds 14,109 BTC, bringing its cumulative BTC holding to 129,218 BTC.
Rumors of liquidations started after Microstrategy’s President, Phong Le, revealed last month that the company could get a margin call if BTC dropped below $21K.
This week, the price of a single BTC dipped below the $21K mark and touched the $20K psychological level yesterday. MicroStrategy argued that it had not received any margin call, telling Reuter on Tuesday: “We can always contribute additional Bitcoins to maintain the required loan-to-value ratio.”
Key Bitcoin Levels to Watch — June 16
The road ahead remains bumpy for Bitcoin as the benchmark cryptocurrency continues to flirt with the $20K region. At this point, the technicals appear to have taken the passenger seat in the price development around BTC, as macroeconomic factors take control of market dynamics.
Regardless, the $20K level remains a critical blockade against further price declines. The primary cryptocurrency recorded a mild jump to the $23K level yesterday on the US Fed rate hike announcement but gave up its gains in the Asian session today. Also, clarifications made by Saylor on the rumored margin call could go some length to support BTC in the coming days.
Meanwhile, my resistance levels are at $22,000, $23,000, and $24,000, and my key support levels are at $20,000, $19,000, and $18,000.
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Bitcoin Market Capitalization: $403.4 billion
Bitcoin Dominance: 44.3%
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