MicroStrategy MSTR - willwillis/thoughts-on-crypto GitHub Wiki
People keep saying MSTR will get margin called when BTC reaches 21k - from what I've read this is incorrect.
I'm jotting down what I think I know about this situation in the hopes to retain some of the details
The misunderstanding stems from a quote from this stream
"So we have 95,643 unencumbered Bitcoin, so we have more that we could contribute in the case that we have a lot of downward volatility, but again, we're talking $21,000 before we get to a point where there needs to be more of margin or more collateral to contribute. I think we're in a pretty comfortable place where we are right now"
- They have 95,643 BTC available to them if the price goes down
- at 21k they'd need to add more collateral, they're not getting called. And they have several ways to add to that collateral.