MicroStrategy Risks Margin Call with Further Bitcoin Plunge
Following Bitcoin’s sink to under $21,000, MicroStrategy is at its closest point to its CFO receiving a margin call at $21,000 on the company’s massive BTC position.
Phong Le, MicroStrategy’s President, said in the May conference meeting, “Bitcoin needs to cut in half for around $21,000 before we’d have a margin call.”
The cost of acquisition for MicroStrategy’s 129,918 bitcoin stash stands at an average of $30,700 per coin, at net fees and expenses.
MicroStrategy Shares Plunge 23%
As the largest holder of Bitcoin, with 129,218 coins, the share prices of MicroStrategy (MSTR) were some of those to have suffered the heaviest losses as the price of Bitcoin crashed under $21,000.
On Monday, June 13th, the share price of MSTR slumped by as much as 23%, and MSTR now trades at $152.15 at the time of writing, with prices having dropped 31.37% over the last five days.
On the Flipside
Why You Should Care
Despite the ongoing bear market, MicroStrategy has vowed never to sell any of its approximately 130,000 bitcoin holdings.
Read more about the Bitcoin crash:
Crypto Stocks Sell-Off as Bitcoin Sinks
Despite the crash, MicroStrategy continues to hold its bitcoin. Find out more here:
Michael Saylor Dispels Rumors that MicroStrategy Is Selling Bitcoin, Promising Further Acquisitions
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Source: Cryptocurrency - investing.com
