“No Objection” – MicroStrategy CEO Plans to Hodl Bitcoin Amid Market Troubles

Bitcoin (BTC) megahodler MicroStrategy can handle more BTC price declines even if it falls as low as $3,500, its CEO confirms.

In a June 14 tweet, Michael Saylor tried to allay concerns that his company’s exposure to BTC could cost him dearly.

Saylor stays cool as MSTR keeps falling

With the largest Bitcoin corporate treasury, MicroStrategy has felt the pain of this year’s BTC price decline, at least on paper.

“No Objection” – MicroStrategy CEO Plans to Hodl Bitcoin Amid Market Troubles
“No Objection” – MicroStrategy CEO Plans to Hodl Bitcoin Amid Market Troubles

According to monitoring resource Bitcoin Treasuries, the company’s 129,218 BTC holding is currently at a net loss of $1.06 billion, about two-thirds of its total market cap.

Rumors of a possible default of $205 million used to purchase these reserves intensified this week. Specifically, the BTC/USD pair falling below $21,000 would trigger a margin call that could see MicroStrategy lose its position if it doesn’t respond with additional capital.

Eventually, the BTC/USD pair fell to lows around $20,800, but the company remained undeterred, with Saylor looking as fresh – even bullish – as ever in his approach to Bitcoin.

“When MicroStrategy launched a Bitcoin strategy, it anticipated volatility and structured its balance sheet to continue HODL through adversity.” he explained to his Twitter followers.

Saylor followed up on an earlier tweet from just after the May crash to $23,800, which was a 10-month low at the time. In it, he outlined the contingency plans, noting that even if all available BTC were pledged as collateral for the loan — implying a BTC price below $3,600, the March 2020 low — the amount of cash available would not end there.

“This is all FUD,” he told mainstream media in a later interview on the subject.

“We started with $5 billion of untied collateral, we borrowed $200 million for it, which is a 4% LTV. If Bitcoin went down 95% of that, we would need to post more collateral.”

He also described the margin issue as an “unimportant matter”.

However, not all market participants are so optimistic. A look at MicroStrategy’s stock price this week highlights the pitfalls of Bitcoin exposure from a traditional market perspective. According to TradingView data, MSTR is now trading down 26.5% month-on-month and down 73.4% year-to-date.

MSTR/USD 1-day candlestick chart. Source: TradingView

Bitcoin company pioneers smile and bear

It’s not just MicroStrategy struggling with the numbers as Bitcoin heads towards an 18-month low.

Data from Bitcoin Treasuries shows that Tesla, which holds the second-largest hoard of BTC, now has an unrealized loss of $535 million on its original $1.5 billion investment.

The $220 million Square payments network has shrunk to $40.8 million, while North American mining giant Marathon is now at a loss with its 8,133 BTC allotment.

Tesla CEO Elon Musk, known for his rhetoric about cryptocurrencies, has yet to break his silence on his vision of the market.

Tesla shares are down about 11% over the past month, including down 1% at Wall Street’s June 14 open.

TSLA/USD 1-day candlestick chart. Source: TradingView

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