MicroStrategy Plans to Hodl Bitcoin Despite Market Conditions

8:25 am, Wed, 15 June 22

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MicroStrategy is the largest business intelligence company in the USA. It also has the largest BTC holdings than any other publicly-traded company.

The CEO of MicroStrategy, Michael Saylor, has been a vocal supporter of Bitcoin and has surprised the community once more.

The crypto market is currently stuck in a downward momentum, with the prices of digital assets like Bitcoin and Ethereum plunging more and more. This led many to believe that the companies holding BTC in large numbers would soon let go of the digital asset.

However, MicroStrategy will not be one of those companies and for solid reasons too. According to reports, Michael Saylor has stated that the company does not plan to let go of the Bitcoin it holds.

More details of this new development are mentioned below.

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Is MicroStrategy in Danger of Being Liquidated?

MicroStrategy is not the only company in the world that holds Bitcoin. However, it may have invested in the crypto king to stay in the game the longest.

There is a lot of volatility and unpredictability that comes with the crypto space and Bitcoin is not immune to that. According to Michael Saylor, the company anticipated the volatility of BTC before investing. This is why, MicroStrategy plans to “HODL through adversity”.

Bitcoin is moving in a bearish trend for a while now and is currently trading at $21,176 (at the time of writing).

Read: Tips to Navigate Through a Crypto Bear Market

Here is a graph by CoinMarketCap that shows the price movement of BTC over the last three months.

btc-graph-15-06-2022

Despite the market conditions, Michael Saylor has emphasized that the company is considering a long-term view on its BTC holdings.

He also retweeted an older post on Twitter as seen below.

There is only a chance of MicroStrategy facing any kind of complications if the price of the crypto king goes as low as $3,562. Even then, the company can “post some other collateral” to avoid liquidation.

Saylor’s announcement of MicroStrategy being safe from liquidation is also backed by financial reports of the company.

As per the financial reports of Q1 of 2022, MicroStrategy owns a total of 129,218 BTC as of March 2022. It is approximately worth $2.9 million, which means the price of the asset has to drop at least 27% more for the company to see any loss in the investment.

Bitcoin is not the only crypto asset that has been going through serious price fluctuations. Cryptocurrencies are dropping and there can be several reasons for that. However, news updates such as the ones mentioned above can indicate that the flagship crypto asset has an undeniable long-term value and prominence.

What to Know Before Investing in BTC?

Bitcoin is the most popular cryptocurrency in the world and while it is quite prominent, it is not your only option. As a novice investor, you should take time to determine which crypto asset you want to buy and which exchange you should opt for.

These are two of several important details every new crypto investor needs to know. Other useful details or tips are mentioned below that can help you dive into crypto investing.

  • Opt for one of the largest crypto exchanges that are secure and also suit your needs the most.
  • Start by investing a small amount.
  • Monitor the price movement of the digital asset you want to buy.
  • Know when to invest.

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