MicroStrategy Liquidates $103M Worth of Bitcoin! BTC Price To Plunge More in Coming Days
Alongside Bitcoin’s drop under $25,000, it is important to recall MicroStrategy’s CFO’s comments. The comments were regarding the possibility of getting a margin call at $21,000 on the company’s huge BTC holdings.
On the May 3 earnings call, Phon Le, the firm’s new Chief Financial Officer, described the collateralization method on MicroStrategy’s Bitcoin position. He assured that they need not put extra cash into their holdings.
Furthermore, Le informed the board members that the first margin call will be issued once Bitcoin falls below $42,000. For the time being, Bitcoin is testing the $22,000 price level, at the moment.
As MicroStrategy prepares its first margin call, investors are at ease. This is due to the large liquidity collateral at the company. The company’s current capital is more than sufficient to support the present position and begin a fresh one.
Today, MicroStrategy has liquidated nearly $103 Million worth of Bitcoin. This liquidation has happened while Bitcoin saw a huge sell-off below $21,000 support.
— CryptoWhale (@CryptoWhale) June 14, 2022
At the time of publication, Bitcoin has slightly surged from its low and trading at $22,351 with a downfall of 7.76% over the past 24hrs.
If Bitcoin rapidly retraces, then the next position should cover the majority of their losses. Consequently, Saylor’s urge to buy Bitcoin at local highs is disappointing news for investors.
Amid unexpectedly low inflation figures, riskier assets began rapidly dropping in value. The reason being traders and investors shifting their holdings into stable assets such as commodities and bonds.
Because of its volatile character, the cryptocurrency market has seen significant outflows.
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