Why MicroStrategy Stock Crashed Today
The company's future is tied to the price of a volatile cryptocurrency.
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The company's future is tied to the price of a volatile cryptocurrency.
Saylor noted that the value of Bitcoin would have to fall below $3,562 for the firm to run out of BTC to further back the loan.
Bitcoin has dropped 18% over the past week, dipping below $33,000, after it was rejected at a key resistance level of $40,000.
MicroStrategy could avoid being forced to sell its bitcoin at a lower price than it bought it if the company adds more collateral to its loan.
Despite their growing desire to invest directly in Bitcoin, large corporations are reluctant to do so due to existing issues in the space.