Michael Saylor’s company MicroStrategy has taken advantage of the currently low bitcoin (BTC) price by adding another BTC 480 to its coffers.
The bitcoin purchase, worth around USD 10m, was made at an average price of USD 20,817 per coin, above the market price at the time of writing (12:20 UTC) of around USD 20,100, Saylor
MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTRhttps://t.co/leQYTXn817
— Michael Saylor⚡️ (@saylor) June 29, 2022
said.
In total, MicroStrategy – a US-listed enterprise software firm that Saylor has turned into a quasi-Bitcoin exchange-traded fund (ETF) – now holds BTC 129,699 (USD 2.6bn), purchased at an average price of USD 30,664.
Commenting on the announcement, members of the Bitcoin community pointed out that MicroStrategy is buying more bitcoin even as some have speculated that the company would face margin calls if the BTC price falls below USD 21,000.
Michael Saylor himself has previously attempted to put these speculations to rest by
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. #HODLhttps://t.co/9WHsIB6Usx
— Michael Saylor⚡️ (@saylor) May 10, 2022
saying that BTC would need to fall to as low as USD 3,562 before a loan it has with Silvergate Bank would require additional collateral.
“If the price of BTC falls below USD 3,562 the company could post some other collateral,” the CEO said back then.
Source: Cryptonews
