MicroStrategy Adds Another $10M In BTC Despite The Crashing Price

MicroStrategy adds another $10 million despite the crashing price of the number one cryptocurrency, continuing to lose money on their BTC bet which is not stopping them from buying more as we can see in today’s latest Bitcoin news.

Cloud software company Microstrategy adds another $10M of BTC to their portfolio despite the price of the asset which dropped below $19,000 today. The tech company spent over $3.98 billion on BTC and owns 129,699 digital coins according to CEO Michael Saylor and it is also at a loss of $1.3 billion since the price dropped.

MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTRhttps://t.co/leQYTXn817

— Michael Saylor⚡️ (@saylor) June 29, 2022

The Microstrategy CTO Phong Lee told shareholders that if the price of BTC drops below $21K, the company can face a margin call on a $205 million loan. The price of BTC now stands under $20,000 which is 70% lower than the November high of $69,000. The margin call is when the margin account runs low on funds beucase of a losing trade. The margin call in Microstrategy’s case will mean forced selling of the BTC holdings and prevent more losses for the shareholders but it seems that Saylor is not worried.

The MicroStrategy CEO took it to Twitter to remind followers and the company of a volatile period and structured balance sheet so they can continue HODLing through adversity. Saylor addressed the margin call concerns and assured the shareholders that even if BTC falls further, his company is prepared to post other collateral. Microstrategy started its BTC-buying spree back in 2020 when it spent $250 million on the asset and Saylor touted the crypto as the best safe-haven asset and digital gold. BTC has been closely correlated to the US Stock market but it took a beating this year as it shed 57% of the market cap since January.

When @MicroStrategy adopted a #Bitcoin Strategy, it anticipated volatility and structured its balance sheet so that it could continue to #HODL through adversity. https://t.co/rPSUVPHUVw

— Michael Saylor⚡️ (@saylor) June 14, 2022

As recently reported, The biggest BTC holder remained optimistic despite the recent market downturn and Microstrategy denies getting a margin call against the $205B BTC-backed loans from Silvergate Capital while BTC dropped below the company’s liquidation price of $21,000. the NASDAQ-listed company started accumulating massive portions of BTC about two years ago and since then, it bought about 130,000 BTC with some purchases coming from excess cash while others executed after convertible note offerings. The company made history by taking a $205 million term loan from the silvergate bank that is collateralized by its own BTC holdings and the company used these funds to purchase even more BTC.