MicroStrategy says it hasn’t received a loan margin call

The Bitcoin digital currency logo is seen at a shop in Marseille, France, February 7, 2021. REUTERS/Eric Gaillard//File Photo

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SINGAPORE, June 15 (Reuters) – Software company MicroStrategy (MSTR.O) said it did not receive a margin call on its bitcoin-backed borrowings on Wednesday and had plenty of additional collateral to promise if necessary.

MicroStrategy borrowed $205 million from crypto bank Silvergate Capital (SI.N) in March, mostly collateralized against bitcoin. On Tuesday, bitcoin’s price briefly fell below a level that company officials said could trigger additional capital needs. Read more

“MicroStrategy has not received a ‘margin call’ against our Silvergate loan, even though bitcoin prices have fluctuated recently,” the company said in an emailed statement.

“We can always contribute additional bitcoin to maintain the required loan-to-value ratio…even at current prices, we continue to maintain more than enough unpledged additional bitcoin to meet our requirements under the loan agreement.”

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Reporting by Tom Westbrook; Editing by Jacqueline Wong

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