MicroStrategy says it has not received a margin call against loan
June 14, 2022 at 09:35 pm EDT
Share
SINGAPORE (Reuters) - Software firm MicroStrategy said it has not received a margin call against its bitcoin-backed borrowing on Wednesday, and it has plenty of extra collateral to pledge if necessary.
MicroStrategy borrowed $205 million from crypto bank Silvergate Capital in March, mostly secured against bitcoin. On Tuesday bitcoin's price briefly dropped below a level company officers had said could trigger extra capital requirements.
"MicroStrategy has not received a 'margin call' against our Silvergate loan even as bitcoin prices have fluctuated recently," the company said in an emailed statement.
"We can always contribute additional bitcoins to maintain the required loan-to-value ratio ... even at current prices, we continue to maintain more than sufficient additional unpledged bitcoins to meet our requirements under the loan agreement."
(Reporting by Tom Westbrook; Editing by Jacqueline Wong)
MicroStrategy Incorporated is a bitcoin development company. It is engaged in the development of the bitcoin network through its activities in the financial markets, advocacy and technology. It designs, develops, markets and sales its software platform through licensing arrangements and cloud subscriptions and related services. It provides artificial intelligence-powered business intelligence, and enterprise analytics solutions. It offers software and services designed to turn complex, chaotic data environments into rich, reliable, and convenient information feeds for its customers. Its cloud-native flagship, MicroStrategy ONE, powers some of the analytics deployments in the world for customers spanning a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector. MicroStrategy ONE provides non-technical users with the ability to directly access novel and actionable insights for decision-making.