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MicroStrategy, an enterprise business intelligence (BI) application software vendor, has been on a buying spree and has accumulated around 115,109 BTC in the past few years. The firm’s CEO, Michael Saylor, one of the biggest backers of Bitcoin, revealed that it won’t ever sell Bitcoin holdings.
MicroStrategy alleviates fear in the market
It is well-known that the entire crypto market is stuck in a downtrend as many people believe that the crypto winter has come. The world’s biggest cryptocurrency, Bitcoin, is more than 50% lower than its all-time high and, at the time of writing, is trading above $30,000. The market remains in extreme fear as per data from Alternative.me.
In a Twitter post, the CEO of MicroStrategy revealed:
“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.”
Saylor also linked the financial results of the first quarter of 2022, which revealed that the firm holds a total of 129,218 BTC, and of this total amount, MicroStrategy can put 115,109 BTC as collateral if needed.
As previously noted by Cryptonary, the firm took the first bitcoin-backed loan of $205 million to buy BTC, which needs $410M as collateral.
Figuring out ways to earn
As revealed by the CEO of MicroStrategy, the firm won’t sell any BTC, and if BTC falls to $3562, they will post some other collateral. This bold statement from Saylor might reaffirm some faith in the already fearful market.
As per another story from Cryptonary, MicroStrategy wants to carefully explore future yield generation opportunities for its Bitcoin holdings instead of letting it sit in its treasury.
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