Bitcoin (BTC) price has dropped by a massive 25% in the past 7 days. This price action has increased trouble for MicroStrategy Inc which is holding huge amounts of BTC in its portfolio.
BTC drops to $21,033
The world’s largest cryptocurrency, BTC went on to dip and touch the $21,033 price level on Tuesday. However, it soon recovered to regain the $22K price level. Dropping below the $21k level may have caused the software firm a margin call.
According to a report, MicroStrategy which holds 129,218 Bitcoins said that if the token’s price drops below a certain price level then it would need to add to its pledged $205 million loan. Meanwhile, Michael Saylor, CEO of the software firm cleared the company’s plan over collapsing BTC price. He mentioned that they adopted a strategy that anticipated volatility. It helped them to structure their balance sheet so that they could hold the token through adversity.
Firm holds 129,218 BTCs
Saylor has been very open about the company being linked with Bitcoin. It was one of such first that went on to buy and add Bitcoin to its treasury. The software firm’s share prices fell by 1.4% in pre market trading. However, it is up around 2.5% since the market opened for trading.
Bitcoin is trading at an average price of $22,203, at press time. BTC has now been falling for the 8 days straight. It is down by 4% in the last 24 hours. The report added Phong Le, MicroStrategy’s president, earlier said that Bitcoin needs to be cut in half by around $21K before they have a margin call.
MicroStrategy is holding 129,218 Bitcoin. It has average pricing calculated to be $30,700 each. According to CoinGecko, the firm has an entry value of $3.97 billion. However, its today value stands at $2.86 billion.
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