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Michael Saylor Says “It Was A Mistake To Stop Buying Bitcoin”!

Michael Saylor, CEO of MicroStrategy (MSTR), debunked rumours that the firm is on the verge of Bitcoin liquidation. During an interview after the company bought more Bitcoins this week, Saylor stated that the company is well-positioned to weather the ongoing storm and continue buying more coins.

According to Coindesk, MSTR obtained a three-year $204 million loan from SilverGate bank to finance its Bitcoin purchases in March. The loan is secured with approximately $820 million BTC, roughly 12% of MSTR’s assets. With the prolonged downward movement of Bitcoin’s price, the value of the firm’s BTC stash has decreased significantly. The statements, which Saylor denied, sparked rumours that the firm could soon face liquidation for under $21,000. Saylor spoke to Christopher Jaszczynski, creator of the popular youtube crypto channel MMCrypto.

“When Bitcoin drops in half, your margin against it is still 10x. So it’s like having $1 million in collateral and borrowing $40,000 against it.”

According to Saylor, the company’s financial condition would only start to worry shareholders if Bitcoin dropped above 95%.

“We also have other cash flows and assets… So we were prepared for the worst. So if you do the math on our Bitcoin position, once bitcoin hits $3500, if it continues to drop, we need to find some other collateral.”

For Long-Term Plans

Saylor continued to advocate the company’s dollar-cost averaging strategy to purchase BTC. They were very clear that they were there in the long run.

“Our strategy is simple, we buy bitcoins, we hold bitcoins, we don’t sell bitcoins… We believe that 100 years from now, Bitcoin is like Manhattan. That’s why we keep you wanting to hold as much Bitcoin as you can. “

According to Saylor, there are only two mistakes they can make. They bought BTC with so much leverage that they were forcibly liquidated on the decline or stopped buying BTC. The crypto billionaire was encouraging investors to continue HODLing. But the market crash is also a part of the game.

“If you’re going to get early access to a revolutionary technology and the first digital commodity to make money in world history”

On Thursday, MicroStrategy bought 480 BTC. Now their total holdings to 129,699 BTC. At press time, BTC is trading at $19,262, placing this stash at a value of $2.5 billion.

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