MicroStrategy to Receive Margin Call If Bitcoin Reaches $21,000, But It Will Never Happen for Them

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While the danger of a Bitcoin margin call is real for the company, it has no issues funding its collateral

Phong Le, the company's new CFO, took a question from Shirish Jajodia about the company's margin before receiving a margin call in their Bitcoin positions. According to Le, MicroStrategy does not need to put more funds into their positions.

To receive the first margin call on their position, Bitcoin would need to cut in half from their average entry, which sits at $42,000. Essentially, Bitcoin's move to $21,000 will trigger a margin call, which would require the company to additionally fund their existing position.Despite having a chance of receiving a call on $21,000, MicroStrategy's CFO is not worried about it thanks to the massive liquidity at the company's disposal.

, dropping to $21,000, MicroStrategy will most likely provide funding for their position, averaging down their position and moving the margin call limit significantly lower.

 

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