Bitcoin nears MicroStrategy ‘margin call’ price

Published by
Reuters UK

SINGAPORE (Reuters) – Bitcoin neared a price level on Tuesday that could force software firm MicroStrategy Inc to stake more tokens against a bitcoin-backed loan or trigger selling of some of its vast holdings, setting fragile cryptocurrency markets on edge. MictroStrategy, an aggressive investor in bitcoin, said it borrowed $205 million from crypto bank Silvergate Capital in March, with the three-year loan mostly secured against some 19,466 bitcoins. If the bitcoin price dropped below about $21,000 that would trigger a “margin call” or a demand for extra capital, MicroStrategy President Phong…

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