MicroStrategy, the company with the world’s largest Bitcoin corporate treasury, has gone as far as saying that it would up its Bitcoin buys to prevent the digital aaset class from getting to the $21k support.
Speaking on its Q1 earnings call, Phong Le, the firm’s president and chief financial officer, also revealed the conditions under which it would receive a margin call on its Bitcoin-collateralized loan.
“As far as where Bitcoin needs to fall, we took out the loan at a 25% LTV, the margin call occurs 50% LTV. So essentially, Bitcoin needs to cut in half or around $21,000 before we’d have a margin call,” he said.
“That said, before it gets to 50%, we could contribute more Bitcoin to the collateral package, so it never gets there, so we don’t ever get into a situation of March call also.”
MicroStrategy thus appeared to state that it would actively support Bitcoin markets during a major capitulation.