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Investing.com – Michael Saylor, CEO of MicroStrategy, one of the largest institutional bitcoin holders, recently confirmed that the company has not received a margin call on its bitcoin-backed loan. The company said it could handle greater volatility.
“We can always contribute additional bitcoins to maintain the required loan-to-value ratio,” MicroStrategy said. In November last year, MicroStrategy expanded its holdings with the addition of 7002 BTC.
MicroStrategy is a publicly traded business intelligence company. The company has gained popularity within the crypto community in recent years due to its bitcoin hoarding strategy. According to the latest data published by CoinGecko, MicroStrategy holds over 129,000 BTC.
In a recent Tweet, Saylor mentioned that the company anticipated market volatility. “When MicroStrategy adopted a Bitcoin strategy, it anticipated volatility and structured its balance sheet so it could continue to HODL through adversity,” Saylor tweeted.
However, the fall of the continues to threaten the position of the company. The latter notably saw a sharp drop in the value of its BTC stock as the market fell.
“The bitcoin market has entered a phase that coincides with the deepest and darkest down cycles of the past. Prices are barely holding above the overall cost base as represented by the price realized, and the on-chain volume fundamentals have further deteriorated. Historically, this phase has taken on the order of 8-24 months to pass, as the market works its way to the bottom,” Glassnode mentions in his report.