Michael Saylor assuages investors after market slumps hurts $MSTR, $BTC
The gaming industry is currently under the microscope as more and more companies dive into the market. The cryptocurrency market has taken a hit because of a short-term dip, but it’s not all doom and gloom for investors. One well known investor offers some insight on how to navigate these turbulent times.,
Michael Saylor, the chief executive officer of Masternode.com, has reassured investors that they are not in danger of losing their investments following a market slump that hurts $MSTR and $BTC. Read more in detail here: michael saylor bitcoin prediction.
Michael Saylor, CEO of MicroStrategy and a proponent of Bitcoin, is sure that his company’s BTC holdings would more than cover any prospective margin call on Bitcoin-backed loans.
In 2021, the American corporate intelligence and software behemoth made news by making a series of significant Bitcoin bets. MicroStrategy’s decision to convert its treasury reserve into BTC assets was influenced by Saylor.
In early May, global markets experienced significant losses, and Microstrategy’s stock was not spared. The value of $MSTR has dropped by 24%, and the value of Bitcoin has also dropped significantly, along with the larger cryptocurrency markets.
This is concerning since MacroStrategy, the company’s subsidiary, took out a $205 million loan from Silvergate Bank in March 2022, with a part of MicroStrategy’s Bitcoin used as security. The funds were subsequently utilized to continue MicroStrategy’s BTC acquisition strategy.
If the price of Bitcoin goes too low, the Silvergate loan will be called owing to the value of the collateralized asset falling. It was a hot topic on the business’s May earnings call, with CFO Phone Le admitting that the company would have to sell some Bitcoin if the price went below $21,000.
MicroStrategy has a $205 million term loan with a $410 million collateral requirement. $MSTR has the ability to commit 115,109 BTC. If the price of #BTC drops below $3,562, the corporation may have to deposit further collateral. In the Q1 2022 presentation, look at slides 11-12. #HODL https://t.co/9WHsIB6Usx
May 10, 2022 — Michael Saylor (@saylor)
On May 10, Saylor turned to Twitter to reassure investors about MacroStrategy’s capacity to repay its loans, which required $410 million in collateral. Saylor highlighted that the business would have to run out of BTC if the value of Bitcoin fell below $3,562 in order to run out of collateral to service the loan.
Despite the crypto cold, MicroStrategy’s CEO will not sell his $5 billion BTC stockpile.
The corporation made headlines in August 2021 when it decided to invest a significant percentage of its money in Bitcoin. It made its first $250 million investment after meeting its shareholder responsibilities, providing the business 21,454 BTC for its treasury holdings.
Saylor said at the time that the investment was motivated by the company’s opinion that Bitcoin is “a stable store of wealth and an appealing financial instrument with more long-term gain potential than keeping cash.”
Saylor was even more adamant, insisting that Bitcoin was a better investment than fiat cash and that the corporation had made Bitcoin its primary asset in its treasury reserve plan.
In September 2020, MicroStrategy made another big Bitcoin purchase, this time for $175 million, adding another 16,796 Bitcoin to their portfolio. From then, the company proceeded to buy BTC, prompting CitiBank to downgrade MicroStrategy’s shares from ‘neutral’ to’sell’ after its intention to make Bitcoin its principal treasury reserve asset.
The “Michael Saylor coindesk” is a website that covers the latest news and updates on cryptocurrency. The site has been reporting on the recent market slumps that have hurt $MSTR, $BTC. Michael Saylor, the CEO of MGT Capital Investments, reassured investors after the markets had a rough day. Reference: michael saylor coindesk.