Michael Saylor, Executive Director of MicroStrategy (MSTR), a well-known investment strategy and planning firm. Revealed the investment balance sheet in August 2020 that poured funds into the purchase of Bitcoin coins, which is the latest. CNBC’s Kate Rooney Reports MicroStrategy’s Bitcoin Acquisition That includes more than $2.4 billion in debt. After the inflation crisis and measures to raise interest rates by the Fed Destroys the crypto market
MicroStrategy Famous investment strategy and planning companies Founded by Michael Saylor in 1989, it was revealed that after making his first Bitcoin purchase by converting $250 million in cash into a 21,454 BTC holding, he added: The company has been steadily accumulating Bitcoin, most recently with more than three times the volume of its initial purchase over the past two years. The company currently holds $3.8 billion worth of bitcoin at current prices. That dropped nearly $6 billion from value in December 2021 after all investment markets. CNBC’s Kate Rooney reports that MicroStrategy’s Bitcoin acquisition has been volatile. That includes more than $2.4 billion in debt.
However, the debt amounted to 1.7 billion dollars. in the form of a convertible banknote At interest rates between 0% and 0.75%, while the company is also taking on $500 million in secured notes. It carries an interest rate of 6.1%. Its latest debt is the first bitcoin-backed loan with a bitcoin value of $205 million in April. at an interest rate of about 4%
In addition, MicroStrategy may face costs in connection with the potential collateral claim. After the last purchase, if the Bitcoin price falls below $21,000, however, Although the company’s stock is weak, Michael Saylor has previously said the company has “enough Bitcoin as collateral” and believes that “In unreliability, only Bitcoin is trustworthy.”
The Bitcoin price, which is hovering around $31,286 at the time of writing, is up 4.3% in the past 24 hours and more than 6% during the week’s rebound. However, BTC/USD is down more than 13%. Over the past 30 days, it is still down more than 54 percent from its all-time high in November 2021. MSTR shares, on the other hand, were trading at $235.71 on Monday, up 7.6 percent compared to the previous month. Still, it was down more than 57% year-on-year, reflecting a negative outlook with unreliability.
MicroStrategy has a $205M term loan and needs to maintain $410M as collateral. $MSTR has 115,109 BTC that it can pledge. If the price of #BTC falls below $3,562 the company could post some other collateral. See slides 11-12 in Q1 2022 presentation. #HODLhttps://t.co/9WHsIB6Usx— Michael Saylor⚡️ (@saylor) May 10, 2022