Crypto -related shares are in the minus - including Michael Saylors Microstrategy

Crypto -related shares are in the minus - including Michael Saylors Microstrategy

as Bitcoin on the sale of $ under $ 23,000 on Monday, the Microstrategy share crashed by up to 28 % on the early trade month, when investors analyzed the probability of additional payments on the Bitcoin-supported loans from the technology company.

Under the direction of CEO Michael Saylor, Microstrategy was founded More as $ 2 billion to buy and keep bitcoins from August 2020. And Saylor continued to buy Bitcoin with loans - secured by Bitcoin.

These credit lines have been questioned since a manager of a company recently said when calling for a profit that they would be beaten by a margin Call-in which a lender demands additional equity or if part of the collateral-around $ 21,000 per Bitcoin.

The technology company holds 129,218 bitcoins worth just over $ 3 billion at the time of printing. Now the company is exposed to the risk of crypto attachment.

The massive downturn came after the crypto loan Celsius had decided to suspend payments and swaps due to "extreme market conditions", and Bitcoin (BTC) fell under $ 23,000 on Monday, the lowest level in 18 months.

The view of a margin Call was addressed when the winning call on May 3 when the Chief Financial Officer from Microstrategy said that this would be done with a lending value ratio of 50 % - or about $ 21,000 per Bitcoin - if you consider that the company has received the loan 25 %. Loan-to-Value-ratio.

However, the company could add additional bitcoins to loan security at any time and thus prevent liquidation.

Saylor said that the company was not interested in the sale, tweeting that if "the price of Bitcoin falls under 3,562 $, the company could set other security".

"[Michael Saylor Has] A schedule," David Tawil, President and co -founder of Prochain Capital, told Blockworks. "He has nothing to win when he fluctuates. He has to go under with the ship on the company's only mission, namely Bitcoin."

After Celsius' break, Tawil said that everything was going to liquidity.

"With Microstrategy you do not need liquidity, apart from the fact that your lenders may require you to store more collateral," he said. "The question is: 'Will the cycle satisfy the lenders? Or no, that will be even worse?' Because what the lender will do is if you store the additional collateral, the value of the additional collateral will decrease together with the rest of the existing collateral."

Microstrategy did not answer a request for comment immediately.

shares related to crypto fell according to the US Ministry of Labor Reached 8.6 %.

The price of Bitcoin was at around $ 11:50 p.m., which corresponds to a decline of 16.7 % in the last 24 hours and 21.2 % compared to seven days ago Coingecko .

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The contribution crypto-related shares are in the minus-including Michael Saylors Microstrategy, there is no financial advice.