Shares of MicroStrategy continued to fall today, as investors fretted over what might a massive selloff bring next, in cryptocurrencies for the software company’s finances.
- MicroStrategy’s stock fell $51.21, or 25%, to $152.15 and has lost more than 70% of its value this year.
- Bitcoin has fallen more than 60% from its November high.
MicroStrategy, a business-intelligence software company turned to bitcoin two years ago as a hedge against inflation.
The company added to its position and in March borrowed $205 million from Silvergate Bank to buy more of the digital asset.
*Microstrategy’s tweet on analytics #1 in B.I
#EnterpriseAnalytics? It’s what we do best.
We ranked #1 in the 2022 @Gartner_inc Critical Capabilities for Analytics & Business Intelligence report!
Check out the whole report and get the details into why we ranked so highly above the competition.https://t.co/umAE6oacxy
— MicroStrategy (@MicroStrategy) May 18, 2022
The company said in May it would face a margin call on that debt should the price of bitcoin drop to about $21,000.
The crypto rout deepened this past weekend with bitcoin falling to $22,611 on Monday afternoon.
A spokeswoman for Silvergate declined to comment.
The selloff also brought the terms of MicroStrategy’s debt agreement into focus for investors, some of whom had flocked to the company’s shares following its announcement to adopt bitcoin as its “primary treasury reserve asset.”
“We don’t expect to receive a margin call, and the company has plenty of additional collateral should we need to post more,” Michael Saylor, MicroStrategy’s founder and chief executive, replied to Wall Street Journal.
CEO Micheal Saylor on Btc long term Company’s goals
— Michael Saylor⚡️ (@saylor) June 14, 2022
While their CEO had very little the to say as Mr. Saylor tweeted, “In Bitcoin We Trust,”
while explaining that the Btc investment is a long term based strategy to his 2.5 million followers!
MicroStrategy’s bitcoin holdings were worth $5.9 billion at the end of March, the company said, revealing it account to circa 129,218 bitcoins in portfolio.