MicroStrategy CEO Plans to HODL Bitcoin “Through Adversity”

michael saylor bitcoin

Those investing in BTC and crypto these days have cause for concern, but Michael Saylor, MicroStrategy CEO, plans to HODL bitcoin. According to the megaholder, MicroStrategy will have no problem riding out additional price declines. 

In a June 14 tweet, Saylor attempted to allay any concerns that the firm’s exposure to BTC will cost it in the near future. 

Calm In the Face of Adversity

As the corporation with the largest BTC treasury, MicroStrategy surely feels the pain amidst 2022’s price declines. At least, on paper they should, right? 

According to Bitcoin Treasuries, a resource that monitors corporate holdings, the firm’s stack is now held at a net loss of about $1 billion. That’s roughly two-thirds of the total market cap. 

Earlier this week, rumors spread about a potential default on $205 million used to purchase those reserves. To clarify, the event of BTC dropping below $21,000 would have triggered a margin call, causing the firm to potentially lose its position if it failed to respond with additional capital. 

However, when BTC fell to $20,800, the company stayed cool, calm, and collected on its approach to BTC. Per the tweet above, the MicroStrategy CEO plans to HODL bitcoin no matter what. 

“When MicroStrategy adopted a Bitcoin Strategy, it anticipated volatility and structured its balance sheet so that it could continue to HODL through adversity.” 

Saylor quote tweeted previous remarks from May’s drop to $23,800. At the time, it was a ten-month low for BTC. Back then, he outlined the firm’s contingency plans. 

Specifically, he noted that even if all available BTC was posted as collateral, the pool of cash would not be empty. 

“That’s all FUD,” he stated in a subsequent interview. He added later that the question of the margin call was a “nothing issue.” 

Still, not everyone participating in the current market is as optimistic as Saylor. The share price of the firm shows the pitfalls of BTC exposure from the legacy markets, with MSTR now trading down 26.5% after a month and 73.4% YTD – per data from TradingView. 

Corporate Pioneers Ready to Grin & Bear It?

As the MicroStrategy CEO plans to HODL bitcoin holdings, he’s not the only one struggling. As the BTC numbers drive toward 18-month lows, Tesla – owner of the second-largest Bitcoin Treasury – has an unrealized loss of $535 million from its initial investment of $1.5 billion. 

Square, the well-known payment network, has a $220 million dollar stack that is down $40.8 million. Moreover, Marathon now sits at a loss on its allocation of 8,133 BTC.

Tesla CEO Elon Musk, who many stan for his crypto insights, has maintained silence per his of current market trends. 

However, Tesla stock has dropped about 11% over the past month, which includes a 1% drop on the June 14 open of Wall Street. 

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