According to Reuters, software company MicroStrategy has not received a margin claim for a loan from the crypto-focused bank Silvergate.
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Aggressive Bitcoin Investors and American Software Companies MicroStrategy He states that he has not received a margin claim for the $ 205 million Bitcoin-backed loan he made in March. According to a Reuters report on wednesday.
Margin calls are situations where investors have to invest more money to avoid losses in transactions made with borrowed cash.
CNBC reported on Tuesday that investors are concerned about MicroStrategyIf you face a margin call, betting $ 4 billion on Bitcoin, you will be forced to liquidate some of your Bitcoin holdings.
MicroStrategy did not respond to CNBC’s request for comment before publishing the report.
The world’s largest cryptocurrency temporarily fell below $ 21,000 on Tuesday with a big sellout this week. MicroStrategy’s share, which some consider to be a substitute for investing in Bitcoin, has fallen by more than 70% since the beginning of the year.
Bitcoin It was trading at $ 21,184.99 on Wednesday at 12:52 am ET.
In March, MicroStrategy borrowed $ 205 million in a three-year loan from a crypto-focused bank. Silver gate Use your own Bitcoin holdings to secure a loan and buy more Bitcoin.
As of March 31, MicroStrategy had 129,218 Bitcoins, each purchased at an average price of $ 30,700, according to company filings. The company is Bitcoin’s largest corporate investor.
Earlier in May, MicroStrategy’s Chief Financial Officer emphasized that margin claims could occur if Bitcoin falls below $ 21,000.
“Despite recent fluctuations in Bitcoin prices, MicroStrategy has not received a’margin claim’for Silvergate loans,” the company emailed Reuters.
“We can always offer additional Bitcoin to maintain the required loan-to-value ratio … Even at the current price, we will continue to maintain enough additional unspoken Bitcoin to meet the requirements under the loan agreement. “MicroStrategy says. The loan-to-value ratio measures the risk of a loan by comparing the amount of borrowing to the value of the asset.
Earlier in June, MicroStrategy CEO Michael Saylor said the company had enough Bitcoin to meet its loan requirements. He said Bitcoin’s price should be below $ 3,500 before more collateral is needed.
Sailor also said in a tweet on Tuesday: The company has organized its balance sheet to anticipate volatility and continue to invest.
MicroStrategy did not immediately respond to CNBC’s request for comment on Wednesday.
— CNBC’s Ryan Browne contributed to this report.
