Amid a cryptocurrency crash, is MicroStrategy liquidating Bitcoin or is it just a conspiracy theory?

The capitalization of the world market for cryptocurrencies increased slightly in the past 24 hours, while the Bitcoin also showed some signs of recovery. While Terra (Luna) isn’t even in the top 20 cryptos anymore, Dogecoin is back in 10th place in terms of market capitalization.

It is interesting to note that the altcoins BNB, ETH and XRP showed a higher recovery rate than bitcoin in the past 24 hours.

However, with the price now at its lowest level this year, institutional sentiment towards the digital asset has shifted, resulting in a large influx into the digital asset for the first time in weeks.

This is a complete turnaround on the part of institutional investors who took money from the digital asset to invest it in their portfolios. from altcoins.

According to reports from cryptoquant, institutional investors would largely contribute to the selling pressure on the negative price premium.

Michael Saylor cleans the air

When we talk about institutional investors, the first name that comes to mind is Microstrategy. So, do Microstrategy sell bitcoins? How is the platform handling a recent crash?

The current crash of the cryptocurrency market is an important test for bitcoin evangelists such as Michael Saylor, CEO of Microstrategy. No, Michael Saylor does not sell all bitcoin, his latest tweet clarifies conspiracy theory for the liquidation of Microstrategy.

Due to the constant crash, the price of bitcoin fell below $30,000. This created panic in the market, which became the support for many conspiracy theories about the popular crypto.

Some rumors suggested that after this crash, microstrategy would likely be liquidated to get rid of its debts, and if something like that happened, Bitcoin investors could have had their worst days.

However, Michael Saylor, after observing the panic in the market, tweeted himself on the subject to clarify that there is no such possibility.

Saylor tweeted:

“MicroStrategy has a $205 million term loan and must hold $410 million as collateral. $MSTR has 115,109 BTC it can pledge. If the price of #BTC falls below $3,562, the company may place another collateral. †

Recently, the company reported a huge loss on its bitcoin position, adding that it will undergo its first margin call after the first cryptocurrency plummets to $21,000.

Nevertheless, the financial director of Microstrategy don’t worry because Microstrategy will most likely provide money for his position, which will allow him to lower the average of his position and significantly lower the margin call limit. All thanks to the huge money the company has.

In addition, many crypto community influencers have speculated that the company can only be liquidated if the Bitcoin will reach critical values ​​such as $3,000,

Microstrategy Collapses With Huge Bitcoin Backed Loan!

However, Michael Saylor has now confirmed that such a day will not come, as his company 115.109 . possess bitcoin, that’s just enough to secure his $205 million debt. He also said there is no risk that the company will be liquidated even if prices fall below $3,562.

Moreover, at some point, bitcoin will stabilize sooner. However, reports suggest that $21,000 is the margin cut price for: microstrategy and at that point the company may be forced to be a part of bitcoin, but certainly not all.

Conclusion

In times like these, many financial experts, Anthony Pompliano, spoke in his recent video about holding out to prevent investors from falling into such theories.

Pump qualified all rumors about the liquidation of the microstrategy from Michael Saylor of “just an internet thing” and alarmism. He called on his followers not to panic about their investments. Anthony also claims that bitcoin is a sustainable asset and that the downside will definitely go away.

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