MicroStrategy denies it received a margin call against bitcoin-backed loan
— Received, Million, Denies, Silvergate, Microstrategy, Bitcoinbacked, Holdings, Loan, Investor, Bitcoin — 1 min read
MicroStrategy borrowed $205 million in a three-year loan from crypto-focused bank Silvergate in March to buy more bitcoin. A margin call is a situation where an investor has to commit more funds to avoid losses on a trade made with borrowed cash. The software firm has bet $4 billion on bitcoin and says it hasn't received a margin call against its bitcoin-backed loan from Silvergate, Reuters reported on Wednesday. The company's CEO and founder says the margin call thing is "much ado about nothing," CNBC's "Squawk on the Street" Michael Saylor said in May that if bitcoin was to drop below $21,000, it could trigger a margin called if it drops below that level, it would trigger a drop. Source