MicroStrategy says has not received a margin call against Bitcoin-backed loan
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MicroStrategy borrowed US$205 million from crypto bank Silvergate Capital in March, mostly secured against Bitcoin.
PHOTO: REUTERS
SINGAPORE (REUTERS) - Software firm MicroStrategy said it has not received a margin call against its Bitcoin-backed borrowing on Wednesday (June 15), and it has plenty of extra collateral to pledge if necessary.
MicroStrategy borrowed US$205 million (S$285.7 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 e-mailed 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."
