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Michael Saylor Says $1 BTC Price Wouldn’t Liquidate MicroStrategy — Just Make Them Buy More
Michael Saylor, CEO of MicroStrategy, has reiterated his stance on the company’s position in the event of a significant decline in Bitcoin prices. According to him, even if the price of Bitcoin were to drop to $1, MicroStrategy would not be forced to liquidate its holdings.
In an interview, Saylor emphasized that the company would instead opt to buy more Bitcoin at such a low price. This is largely due to the fact that most of MicroStrategy’s liabilities are comprised of convertible debt and preferred stock, rather than collateralized loans tied to the value of Bitcoin.
This structure allows the company to avoid forced liquidations that might occur in the event of a sharp decline in cryptocurrency values. As such, Saylor believes that the risk of a margin call is extremely low, even at such an extreme price level as $1.
The CEO’s stance has been echoed by analysts and industry experts who have consistently emphasized that MicroStrategy’s financial arrangement does not put it at risk of liquidation.
Source: zycrypto.com
