According to MicroStrategy CEO Michael Saylor, the company does not plan to liquidate its cryptocurrency reserves. In order for the firm to run out of digital assets to secure loans, the price of Bitcoin must fall below $3,562. He has said:
“MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. MSTR has 115,109 BTC that it can pledge. If the price of BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation.”
The company has recently released financial results for Q1 2022. During the reporting period, the company earned $119.3 million on expenses of $298 million. The latter figure includes $170.1 million that came from a negative revaluation of her digital assets.
MicroStrategy holds 129,218 BTC in balance, worth more than $4 billion at the moment. At the same time, 115,109 BTC are stored in the reserves of the MacroStrategy division.
