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MicroStrategy, the world’s largest bitcoin holding company, has denied that it has been asked to provide additional collateral for a $205 million loan invested in bitcoin.
Earlier this week, bitcoin fell further below the $21,000 level, leading to news that MicroStrategy may be asked to provide additional collateral for a loan the company took out with Silvergate Bank in March. The company used bitcoin in its holdings as collateral for the loan.
Previously, MicroStrategy’s chief financial officer revealed in May that if Bitcoin were to fall below $21,000, it could be a point at which the company would be asked to post more collateral.
Recently, the company said that although bitcoin prices are currently volatile, MicroStrategy has not been asked to provide additional collateral of any kind for a Silvergate Bank line of credit.
In early June, MicroStrategy CEO Michael Saylor said the company had enough bitcoin to cover the loan’s collateral. He said bitcoin would have to fall below $3,500 before the company would have to put up additional collateral.
The movement of various cryptocurrencies is still weak today (June 15), with Bitcoin falling as low as $20,365, again below yesterday’s low. This is the lowest level since December 2020 and a 70% drop from its peak in November 2021.