Ask HN: What happens if MicroStrategy gets a margin call?

7 points

4 years ago

So its in the news that MicroStrategy took out a huge loan to buy bitcoin and that if the prices falls to ~$21,000 that they would receive a margin call on the loan.

https://www.cnbc.com/2022/06/15/bitcoin-microstrategy-denies-it-received-margin-call-against-silvergate-loan.html

So the question is, what is the consequences of this? Will MSTR have to sell some of their bitcoin further fueling the sell-off? Do they just borrow against other collateral? Is this a big deal or a non-event?

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