According to MicroStrategy’s latest earnings report, the company Bitcoin (BTC) It suffered a huge loss in its positions, and the report learned that if the BTC price drops to $21,000, it will face a margin call. However, there was a comforting statement from the company on the subject.
The company’s new CFO, Phong Le, bitcoin He answered a question about the margin call of his positions. According to Le, MicroStrategy explained that in such a scenario, the company would not need to add more funds.
For the first margin call to be made, the BTC price must depreciate 50 percent from the company’s average entry price of $42,000. In other words, under normal conditions, if the price of Bitcoin fell to $ 21,000, the company would have to add funds to its positions.
Why MicroStrategy May Not Receive Margin Calls Even If Bitcoin Price Drops
MicroStrategy, which should normally receive a margin call if the Bitcoin price drops to $21,000, is not worried though. In his statement, MicroStrategy CFO believes that the company will not have any problems thanks to the huge liquidity it has.
According to the CFO, the company will add more funds to its already large prospects position before the BTC price drops to $21,000, lowering the average of its position, allowing the margin call limit to move down.
Some experts think that the company will only have liquidity if the BTC price drops to the $ 3,000 level. However, even if the BTC price drops to 2018 levels, the company may still have enough liquidity to add to its positions.
*Not investment advice.