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Back in March, the publicly listed company borrowed $205 million from Silvergate Bank in a mission to buy more Bitcoin — using stockpiled BTC as collateral.
MicroStrategy later confirmed on a conference call with investors that margin calls would start at $21,000 — a figure unimaginable until a few days ago.
CoinMarketCap data shows that BTC slipped to a low of $20,514.10 early on June 15.
Although the business intelligence firm said Silvergate had not yet asked for more collateral last night, that could change today.
The company may opt to add additional amounts of Bitcoin as collateral to prevent margin calls from being triggered.
In an update on Twitter, Saylor – one of the most vocal BTC speculators in the industry – appeared undeterred. He wrote:
"When MicroStrategy adopted the #Bitcoin Strategy, it predicted volatility and restructured its balance sheet so that it could continue to #HODL Bitcoin overcome adversity."
Saylor also encouraged his followers to "line up in turn and stay humble" — and warned that, in addition to Bitcoin, most cryptocurrencies are "unregistered securities," especially proof-of-stake-based blockchains.
Pointing to the carnage facing several cryptocurrency lending platforms, he wrote:
"The solid ethical, economic and technical foundation for DeFi is Bitcoin. The next generation of DeFi will be built using the Lightning protocol and BTC tokens."
MicroStrategy owns nearly 130,000 BTC and began accumulating cryptocurrencies again in August 2020.
While this amount will be worth nearly $9 billion when BTC hit an all-time high of $68,789 last November, it's only worth $2.7 billion today.
There has been more than $6 billion in declines — and even more worryingly, MicroStrategy has dropped $1.2 billion when compared to how much it paid for Bitcoin.
