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2023 Apr 12, 12:49am
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2023 Apr 12, 12:49am
I wonder what the cost basis for Microstrategy's bitcoin holdings.
He should be unloading if he is in the green to at least break even if it goes to $0.
Reminds me of Bruce Berkowitz buying St Joe and owning about 48% of outstanding shares; he has been slowly selling them off and is making some gains. Berkowitz lost a lot with his Sears investments.
He should be unloading if he is in the green to at least break even if it goes to $0.
Reminds me of Bruce Berkowitz buying St Joe and owning about 48% of outstanding shares; he has been slowly selling them off and is making some gains. Berkowitz lost a lot with his Sears investments.
MicroStrategy Inc. may need to post additional collateral for a Bitcoin-backed loan as the price of the world’s largest cryptocurrency tests a key price level of $21,000 flagged by the company.
The software firm controlled by Bitcoin advocate Michael Saylor had used its vast Bitcoin holdings to secure a $205 million loan in March to buy even more cryptocurrency. But as the value of that collateral initially worth around $820 million falls to about half that, the company may need to provide more capital to back the loan.
(Bitcoin is below $21,000)
https://www.bloomberg.com/news/articles/2022-06-14/microstrategy-risks-margin-call-as-bitcoin-drops-below-21-000
Margin Call:
A margin call occurs when the value of an investor’s margin account falls below the broker’s required amount. An investor’s margin account contains securities bought with borrowed money (typically a combination of the investor’s own money and money borrowed from the investor’s broker).
https://www.investopedia.com/terms/m/margincall.asp
Things are going to get ugly real fast. Also a 30 year mortgage is now at 7%.