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Michael ‘Diamond Hands’ Saylor Not Worried About Recent Drop in Bitcoin Price

Michael ‘Diamond Hands’ Saylor Not Worried About Recent Drop in Bitcoin Price


Recently, MicroStrategy’s founder and CEO Michael Saylor explained why it is extremely unlikely that his firm will be forced to see any of its Bitcoin holdings.

In a tweet published in the aftermath of Bitcoin falling below 50% from its last all-time price high, Saylor outlined MicroStrategy’s $BTC position to investors. Saylor said the firm, which primarily creates business-intelligence software, has a $205 million term loan that needs to maintain $410 million as collateral.

The firm currently has 115,109 bitcoins that it can pledge for collateral, meaning Bitcoin would need to fall below $3,562 for the company to be required to post additional assets. 

As noted in a report by CoinDesk, Saylor is essentially implying that there is “almost no price low enough,” that would necessitate MicroStrategy being forced to sell any of its $BTC holdings. In the presentation accompanying the tweet, MicroStrategy outlined the company’s massive Bitcoin coffers, which can be applied for collateral as needed. 




Despite Saylor’s strong position, MicroStrategy’s share price suffered alongside other technology stocks as the S&P 500 underwent a week-long selloff. Shares tumbled nearly 26% the day before Saylor’s tweet, while Bitcoin broke below $30,000 for the first time in nearly a year. 

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Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Image Credit

Featured Image by “Mariakray” via Pixabay.com





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