by No matter how unique cryptocurrencies may be within the crypto-verse but somehow, each cryptocurrency looks up to Bitcoin. If you pay a close look at the cryptocurrency market, you would realize one thing.
You will realize that all the cryptocurrencies are revolving around Bitcoin (BTC). If Bitcoin somehow ends up facing a downfall, it ends up bringing the entire cryptocurrency universe down.
It has become a common perception among investors to look at Bitcoin’s price movement. Even if they have invested money into digital assets other than Bitcoin, they make it a common practice to monitor the price of Bitcoin.
Then Comes MicroStrategy
Just like cryptocurrencies revolve around Bitcoin, the largest cryptocurrency also tends to revolve around the interest of investors. The more money invested into Bitcoin means the more it will gain valuation and worth. This leads to bringing in more investors towards Bitcoin and the cycle continues.
Although millions of individual investors are investing into Bitcoin, it is investors such as MicroStrategy that have given Bitcoin its true strength.
In less than two years, MicroStrategy has spent more than $2 billion in accumulating over 129k Bitcoins. Given the recent dip in the price of Bitcoin, many investors and analysts were asking questions about MicroStrategy’s stance.
Recently, it was rumored that due to the huge losses in the trading price of Bitcoin, a margin call had been made against MicroStrategy. Some sources claimed that the margin call was for the loan to acquire more Bitcoin. MicroStrategy had acquired the loan putting Bitcoin in its possession as a lateral.
MicroStrategy Denied the Margin Call Rumors
The rumors claimed that the loan MicroStrategy took was around $210 million. If the rumors were to be true, then it could have resulted in a huge upset for the entire Bitcoin market.
MicroStrategy is the largest institutional investor in Bitcoin and if it ends up liquidating a portion of its Bitcoin, things can get ugly for the entire Bitcoin community.
However, Michael J. Saylor, the CEO of MicroStrategy has clearly denied such rumors. He has debunked any rumors involving any kind of margin call or the liquidation of Bitcoin.
Initially, it was the CFO of MicroStrategy who had claimed that the company would have to liquidate Bitcoin if its value falls below $21k.
Michael Saylor has reportedly denied such claims and he has provided a clarification in the light of their Bitcoin strategy. He has clarified that as per their Bitcoin strategy, they are far from any kind of margin call.
He stated that margin call will not be made until the price of Bitcoin falls below $3,562. This is a huge positive sign for the entire Bitcoin community. It is also a signal that the investors can continue investing in Bitcoin without any fear.
At the time of writing, the trading price of Bitcoin is worth $21,072.11 and it has dipped by 1.27% in over 24-hours.
