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0 sats \ 2 replies \ @SpaceHodler 2 Nov 2023 \ parent \ on: MicroStrategy Announces Q3 2023 Financial Results; now Holds 158K BTC in Total bitcoin
A margin call is a forced sale, so I'm not sure what the last sentence means.
Maybe it's that the terms of the loan are flexible enough that if it wicks below that level briefly they won't get liquidated.
Read the article, it continues with this:
“If the price of BTC falls below $3,562 the company could post some other collateral,” he wrote in the same tweet.
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Yes that was on the silvergate loan in any case, which they have since paid off entirely. It was always noise as they could have posted yet more collatoral, though it wouldn't have been good at that low $3k level.
The main risks really were (and still are) refinancing when each of the loans becomes due for repayment. I tried to break this down in the article below -
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