MicroStrategy Has Not Received a Margin Call, Says Saylor on Bitcoin Holdings

Michael Saylor, the CEO of MicroStrategy, one of the largest institutional holders of Bitcoin, recently confirmed that the company has not received a ‘margin call’ against its Bitcoin-backed loan. In an emailed statement to Reuters, Saylor said that the company can withstand further volatility.

"We can always contribute additional bitcoins to maintain the required loan-to-value ratio," MicroStrategy told Reuters. In November last year, MicroStrategy expanded its holdings with the addition of 7002 BTC.

MicroStrategy is a public-listed business intelligence firm. The company hasgained popularity among the crypto community in the past few years due to its Bitcoin accumulation strategy. According to the latest data published by CoinGecko, MicroStrategy holds more than 129,000 BTC.

In a recent Tweet, Saylor mentioned that the company anticipated market volatility. “When MicroStrategy adopted a Bitcoin Strategy, it anticipated volatility and structured its balance sheet so that it could continue to HODL through adversity,” Saylor Tweeted.

Bitcoin Crash

Since hitting an all-time high of more than $68,000 in November 2021, Bitcoin has lost almost 70% of its value. Amid the market sell-off, institutional investors pulled money out of BTC investment products.

“The Bitcoin market has entered a phase coincident with the deepest and darkest bear cycles of the past. Prices barely hold above the aggregate cost basis as captured by the Realized price, and on-chain volume fundamentals have deteriorated further. Historically, this phase has taken on the order of 8 to 24 months to pass by as the market hammers out a final bottom,” Glassnode mentioned in its report.

“Although the current rate of balance growth is waning, it was preceded by the most aggressive and consistent accumulation period post-Bitcoin’s initial rise in the last 18-months. These smallholders have seen a net balance growth of +20,863 BTC since the May 9th Luna crash,” the report added.