Michael Saylor, CEO and founder of the largest institutional investor in bitcoin (BTC) MicroStrategy, indicates that his bullish view of bitcoin has not changed despite the crash. He indicates that the decision to buy bitcoin with his company has been the best decision.
MicroStrategy holds a total of 129,218 BTC, with an average purchase price of $30,700. The company has suffered an unrealized loss of nearly $1 billion due to the fall in its share price.
Bitcoin margin call for MicroStrategy
This led to many rumors that MicroStrategy might have to sell everything by a margin callor a message that your position must be liquidated due to the high losses.
However, Saylor admitted that these rumors were nonsense, the loan in question amounts to $205 million from Silvergate and is only a fraction of the total bitcoin position. He said this rumor only gave him extra Twitter followers.
“On a multi-billion dollar balance sheet, we only have a $200 million loan that we need to collateralize, and we now have 10x more certainty about that.” added Saylor.
Saylor’s Bitcoin Strategy
In an interview with CNBC Saylor indicated that MicroStrategy will continue to buy of bitcoin for the current price. He is still convinced that BTC is a risk-free store of value in ten years and that he doesn’t want to focus so much on the shorter term.
He added that anyone who owns bitcoin will not have a loss on its position in four years. This is because the four-year moving average is exactly around $21,000 and therefore offers a good buying opportunity.
It remains to be seen whether Saylor will ultimately be right and make the best bitcoin trade ever, or if the company will completely go under.
