Michael Saylor’s MicroStrategy Bitcoin investment is currently at a $1 billion unrealized loss
Remember Michael Saylor? He was the guy who encouraged naive retail investors to liquidate every asset they own to buy Bitcoin on leverage. We covered Saylor back in April when his company MicroStrategy purchased additional 4,167 bitcoins for ~$190.5 million at an average price of $45,714 per bitcoin.
As you may recall back then, MicroStrategy had borrowed $400 million to buy Bitcoin even as its stocks plunged from an all-time high of $1292 to $472. To date, MicroStrategy has a $205 million BTC collateralized loan with Silvergate Bank. If BTC drops below $21K, Saylor’s MicroStrategy will be forced to hand over uncollateralized BTC to answer any potential margin call and the company will be forced to pay up, Fortune reported.
With Bitcoin hovering between $22,000 and $24,000, Michael Saylor’s MicroStrategy Bitcoin investment is currently at a $1 billion unrealized loss. Saylor is now at a point of no return and he’s not planning to sell any of the company’s bitcoin investment.
In the March 2021 video below, you can hear Saylor telling the host saying:
“Once you know how it all ends, the only use of time is…how do I buy more bitcoin? But take all your money and buy bitcoin. Then take all your time, figure out how to borrow more money to buy more bitcoin. Then take all your time and figure out what you can sell to buy bitcoin. And if you absolutely love the thing, that you don’t want to sell it, go mortgage your house and buy bitcoin with it. And if you’ve got a business that you love because your family works for the business and it’s in your family for 37 years, and you can’t bear to sell it, mortgage it, finance it, and convert the proceeds into the hardest money on earth, which is bitcoin.”
Never forget Michael Saylor encouraging unsophisticated investors to liquidate every asset they own to buy Bitcoin on leverage.pic.twitter.com/Wvv3c2JpOZ
— Nate Anderson (@ClarityToast) June 13, 2022
Below is another version of the video.
Saylor is cringe, but at least he’s a bull. We must stand with him, he’s all we got pic.twitter.com/yRs8Wzl7wc
— stockmart (@stockmart_) June 8, 2021
In 2019, Microstrategy made the headlines after it sold the domain name Voice.com to Block.one for $30 million for its new blockchain-based social media platform. As we reported back then, MicroStrategy is a Virginia-based tech company founded by the renowned Bitcoin investor Michael Saylor.