Michael Saylor Says MicroStrategy Margin Call Talk Is ‘Much Ado About Nothing’
The CEO also told CNBC that the software company planned to buy more bitcoin with its free cash flow.
Jun 15, 2022 at 3:34 p.m. UTC
Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.
MicroStrategy (MSTR) CEO Michael Saylor reiterated his bullish stance on owning bitcoin as part of the company’s strategy, and said he remains unconcerned about a margin call on the company’s bitcoin-backed loan from Silvergate.
- “The margin call thing is much ado about nothing,” Saylor said on CNBC's "Squawk on the Street" Wednesday morning. “It’s just made me Twitter famous, so I appreciate that,” he added.
- “On a multibillion-dollar balance sheet, we've only got a $200 million loan that we have to collateralize and we're 10x over collateralized on that right now,” Saylor added.
- Saylor also said MicroStrategy continues to generate cash flow, and that “from time to time as we have excess cash, we're going to buy more [bitcoin],” he told CNBC. “Our strategy is: Buy it and hold it and sweep our free cash flows into bitcoin.”
- When asked whether it would make sense for the company to buy some of its own bonds, which are trading at a discount, Saylor said that "the securities market is very volatile" and that the company's investors are very aware of its bitcoin-focused strategy.
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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.
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Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.
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