MicroStrategy CEO Michael Saylor said on Tuesday that the software company could endure price volatility in bitcoin after the cryptocurrency fell to levels that raised concerns about the probable liquidation of the company’s leveraged position.
MicroStrategy, an aggressive investor in bitcoin, said it borrowed $205 million from crypto bank Silvergate Capital.
If the bitcoin price dropped below about $21,000, it would trigger a “margin call” or demand for extra capital.
Bitcoin fell below that level to $20,816.36 on Tuesday before steadying near $22,000.
It was unclear if the price moves had any consequences for MicroStrategy, or if the firm already provided more bitcoin or cash to secure the loan.
The company did not respond to requests for comment.
MicroStrategy had “anticipated volatility and structured its balance sheet so that it could continue to #HODL through adversity,” Chief Executive Officer Saylor said in a tweet on Tuesday.