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Wednesday, October 4, 2023

‘It’s A Mistake To Stop Acquiring Bitcoin,’ Says Michael Saylor CEO of MicroStrategy

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Michael Saylor, CEO of business intelligence firm MicroStrategy (MSTR) has dispelled chatter that the firm’s Bitcoin bet is on the verge of facing liquidation. Speaking during an interview after the company purchased more bitcoins this week, Saylor stated that the company was well placed to weather the ongoing storm and continue purchasing more coins.

In March, MSTR took on a three-year $204.7 million loan from crypto-focussed lender SilverGate bank to fund its Bitcoin purchases. The loan was collateralized with around $820 million in Bitcoin which was roughly 12% of MSTR’s holdings. With Bitcoin’s price taking an extended leg down, the firm’s BTC stash value dwindled significantly, triggering rumors that the firm could soon face liquidation under $21,000, statements that Saylor dismissed.

“When bitcoin was cut in half, we are still 10x over collateralized against that,” Saylor told Christopher Jaszczynski, creator of popular youtube crypto channel MMCrypto. “So in essence this is like having a million dollars of collateral and borrowing $40,000 right against it.”

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