Nasdaq-listed business intelligence firm MicroStrategy of Michael Saylor had invested nearly $4 billion to buy 129,218 BTC, according to SEC filings in March 2022. The firm borrowed $205 million in a three-year loan from crypto-focused bank Silvergate in March to buy more BTC and used 19,466 Bitcoins to secure the loan. As the BTC prices continue to crash, rumors said that MicroStrategy could be faced with margin calls against the loan. However, they said that they did not receive a margin call.
In the course of Wednesday, the BTC price dropped to $20,200. “MicroStrategy has not received a ‘margin call’ against our Silvergate loan even as bitcoin prices have fluctuated recently,” the company informed Reuters.
MicroStrategy’s average purchase price for its Bitcoin sits at $30,700. The company has about $2.2 billion in debt and roughly $44 million in annual interest expenses. It’s expected to generate $90 million of free cash flow this year, according to a BTIG analyst.