![\"Microstrategy](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2022\/06\/microstrategy-margin-call.jpg\")
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The CEO of the Nasdaq-listed software company Microstrategy has debunked the rumor that his company is facing a margin call for a bitcoin-backed loan and will be forced to sell some coins. If the price of the cryptocurrency \u201cfalls below $3,562 the company could post some other collateral,\u201d the executive explained. <\/strong><\/p>\n Microstrategy CEO Michael Saylor debunked the rumor that his company is close to having to liquidate its bitcoin to meet a margin call for a bitcoin-backed loan. The rumor intensified as the price of BTC<\/a> continued to plummet after the weekend sell-off.<\/p>\n However, Saylor tweeted Tuesday:<\/p>\n When Microstrategy adopted a bitcoin strategy, it anticipated volatility and structured its balance sheet so that it could continue to hodl through adversity.<\/p>\n<\/blockquote>\n Microstrategy\u2019s Q1 2022 presentation<\/a> details that the company took out a three-year term loan of $205 million from Silvergate Bank against 19,466 bitcoins.<\/p>\n Saylor revealed in a May 10 tweet that Microstrategy \u201cneeds to maintain $410 million as collateral\u201d for this loan.<\/p>\n Microstrategy is currently holding 115,109 BTC<\/a>. In addition, its subsidiary, Macrostrategy, is holding 14,109 BTC<\/a>, bringing its group total to 129,218<\/a> bitcoins.<\/p>\n The rumor started circulating when Microstrategy\u2019s president, Phong Le, said in May that if the price of bitcoin dropped below about $21K, it would trigger a \u201cmargin call.\u201d Typically, a margin call could be met by the company providing more capital or liquidating the loan\u2019s collateral.<\/p>\n The price of bitcoin dipped below the $21K level this week. However, Microstrategy told Reuters Tuesday that it has not received a margin call, emphasizing:<\/p>\n We can always contribute additional bitcoins to maintain the required loan-to-value ratio.<\/p>\n<\/blockquote>\n Furthermore, Saylor explained that Microstrategy\u2019s 115,109 bitcoins can cover the $410 million collateral down to the BTC<\/a> price of $3,562. However, if the price of the crypto were to fall even lower, Microstrategy has other assets it could post as collateral, the executive detailed, elaborating:<\/p>\n Microstrategy has 115,109 BTC<\/a> that it can pledge. If the price of BTC<\/a> falls below $3,562 the company could post some other collateral.<\/p>\n<\/blockquote>\nMicrostrategy Hasn\u2019t Received a Margin Call<\/h2>\n
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