Explained: India's Connection With World’s Largest Corporate Bitcoin Holder MicroStrategy

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MicroStrategy Incorporated is an American company founded in 1989 by Michael J. Saylor, Sanju Bansal, a Indian origin citizen of United States and Thomas Spahr, the firm develops software to analyze internal and external data in order to make business decisions and to develop mobile apps.

New Delhi (ABC Live): An American Company namely MicroStrategy is the world’s largest corporate bitcoin having Bitcoin holdings of worth around $3.965 billion now under threat of facing margin calls on a $205 million bitcoin-backed loan.

It is on records that in August 2020, MicroStrategy invested $250 million in Bitcoin as a treasury reserve asset, citing declining returns from cash, a weakening dollar and other global macroeconomic factors.[

The company went on to make several additional large purchases of Bitcoin; as of May 2022, the company has spent around $3.965 billion purchasing Bitcoin at an average purchase price of about $30,700 per Bitcoin.

On the company’s quarterly earnings call on May 3, 2022, MicroStrategy CFO Phong Le stated that the company would face a margin call if bitcoin’s price fell to about $21,000. A margin call would obligate the company to sell some of its bitcoin holdings. Le stated that the company could add more collateral to its loan to avoid such a situation.

After bitcoin’s price fell to about $20,800 in June 2022, the company said that it had not received a margin call and that it has enough capital to withstand further volatility.

About MicroStrategy

MicroStrategy Incorporated is an American company founded in 1989 by Michael J. Saylor, Sanju Bansal, a Indian origin citizen of United States and Thomas Spahr, the firm develops software to analyze internal and external data in order to make business decisions and to develop mobile apps.

Credit: Article based upon inputs from Wikipedia and other online sources.

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