Bitcoin nears MicroStrategy 'margin call' price

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Bitcoin nears MicroStrategy 'margin call' price
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Bitcoin neared a price level on Tuesday that could force software firm MicroStrategy Inc to stake more tokens against a bitcoin-backed loan or trigger selling of some of its vast holdings, setting fragile cryptocurrency markets on edge.

A stock graph is seen with a representation of bitcoin in this picture illustration taken taken March 13, 2020. REUTERS/Dado Ruvic/File PhotoSINGAPORE, June 14 - Bitcoin neared a price level on Tuesday that could force software firm MicroStrategy Inc

MictroStrategy, an aggressive investor in bitcoin, said it borrowed $205 million from crypto bank Silvergate CapitalIf the bitcoin price dropped below about $21,000 that would trigger a "margin call" or a demand for extra capital, MicroStrategy President Phong Le said in webcast in May.Bitcoin fell below that level to $20,816.36 on Tuesday before steadying near $23,000. Typically a margin call is met by providing more capital or liquidating the loan's collateral.

"We could contribute more bitcoin to the collateral package, so ... we don't get into a situation of a margin call," he had said.

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