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Michael Saylor wants you to know that nobody is calling.
The MicroStrategy executive chairman has publicly shot down speculation that the company faces an imminent margin call on its massive Bitcoin position. The reassurance comes at a moment when Bitcoin is trading well below what MicroStrategy paid for most of its stack.
The gap between cost and current price
MicroStrategy holds approximately 713,000 BTC with an average acquisition cost of roughly $75,699 per coin. Bitcoin has recently been trading between $61,000 and $67,000.
The company’s debt consists largely of unsecured or long-dated instruments, with maturities stretching into 2027 and 2028. Unsecured debt means no lender is holding Bitcoin as collateral with the power to force a sale if prices dip below a certain threshold. Long-dated maturities mean the company doesn’t face near-term repayment cliffs that could squeeze its liquidity.
A familiar playbook
This is not the first time Saylor has had to play defense against margin call speculation. Back in June 2022, during a particularly brutal stretch for crypto markets, similar rumors swirled around a $205 million loan MicroStrategy had taken from Silvergate Bank.
At the time, Saylor told Bloomberg and CNBC that there was no margin call risk as long as the loan-to-value ratio stayed below 50%.
That said, the current situation has one wrinkle that 2022 didn’t. MicroStrategy recently sold 32 BTC at an average price of $77,135 to meet preferred stock obligations. For a company that essentially built its brand around the promise of never selling Bitcoin, that’s noteworthy.
What this means for investors
Based on the current debt structure, MicroStrategy appears able to avoid forced liquidation at least through the 2027-2028 maturity window. The absence of secured, short-term lending arrangements gives MicroStrategy a buffer that most leveraged crypto positions don’t enjoy.
If Bitcoin were to stay in the $60,000 range, or fall further, through the period when those long-dated bonds come due, the company would face a different set of questions about refinancing and repayment.
The 32 BTC sale is worth watching as a leading indicator. If those small, obligation-driven sales become more frequent or grow in size, it would suggest that the company’s cash flow situation is tightening, even if outright margin calls remain off the table.
MicroStrategy is the single largest publicly traded corporate holder of Bitcoin at approximately 713,000 BTC. By using unsecured, long-duration debt rather than collateralized loans, the company has insulated itself from the kind of forced liquidation that affected overleveraged players in previous cycles.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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