MicroStrategy says it has not received a margin call against loan

SINGAPORE (Reuters) - Software firm MicroStrategy said it has not received a margin call against its bitcoin-backed borrowing on Wednesday, and it has plenty of extra collateral to pledge if necessary.

MicroStrategy borrowed $205 million from crypto bank Silvergate Capital in March, mostly secured against bitcoin. On Tuesday bitcoin's price briefly dropped below a level company officers had said could trigger extra capital requirements.

"MicroStrategy has not received a 'margin call' against our Silvergate loan even as bitcoin prices have fluctuated recently," the company said in an emailed statement.

"We can always contribute additional bitcoins to maintain the required loan-to-value ratio ... even at current prices, we continue to maintain more than sufficient additional unpledged bitcoins to meet our requirements under the loan agreement."

(Reporting by Tom Westbrook; Editing by Jacqueline Wong)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Trump's MAGA Inc unleashes $277 million last-ditch effort to save Republicans in key US races
• As Russia penalises European firms over Ukraine, US rivals largely spared
• Meta ordered to pay $25 billion to New Mexico after jury finds company misled consumers about data privacy