If Bitcoin falls much further, MicroStrategy could face margin calls on its loans — and the company's share price may suffer too.
After a miserable Monday for Bitcoin, all eyes are on MicroStrategy and Michael Saylor, its bullish CEO.
The publicly traded company has been one of the most aggressive BTC investors on the planet.
But with the world's biggest cryptocurrency falling by 17% on Monday alone — and now trading at a 65% discount to all-time highs set back in November — Saylor's strategy of hodling for dear life could be put to the test.
Here are some key numbers which help illustrate MicroStrategy's predicament.
That's how much Bitcoin that MicroStrategy has accrued since the company started investing in August 2020.
The total amount of money that the business intelligence firm has spent building up its crypto warchest.
How much MSTR's stock has plunged over the past 12 months — indicating that the company's performance on Wall Street is heavily dictated by Bitcoin's direction of travel.
The value of a Bitcoin-collateralized loan that was taken out with Silverbank Bank back in March.
If Bitcoin's price falls below this figure, MicroStrategy will face a margin call on this loan — and the company would need to add even more BTC as collateral.