Michael Saylor stressed that the company has the ability to service its current loans

​MicroStrategy refused to sell bitcoins to secure loans

11.05.2022 - 09:35

239

2 min

What’s new? MicroStrategy has no plans to sell bitcoins from its cryptocurrency reserves to secure previously taken loans. This was announced by the company’s head Michael Saylor on his Twitter account.

What other statements have been made? According to Saylor, the company has enough assets to secure loans. MicroStrategy can pledge 115 109 bitcoins (about $3,56 billion at the exchange rate on May 11) to secure a $205 million term loan. This amount will be sufficient until the bitcoin price falls below $3562. If the price falls even lower, the company could post another collateral, Michael Saylor stressed.

What events happened before? In March 2022, MacroStrategy, a subsidiary of MicroStrategy, entered into an agreement with Silvergate Bank for a $205 million loan. All of the funds were used to buy bitcoins.

On April 26, MicroStrategy joined the Fidelity Investments custodial platform’s program, which offers the company’s employees the opportunity to invest their retirement savings in bitcoin.

Author:

Michael Golikov Michael Golikov

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