Wherever the price of Bitcoin falls, Michael Saylor will begin to damage? Here is the critical BTC price threshold

Bitcoin’in After the recent decline, attention was once again translated into a publicly available Microstrategy (Yeni name Strategy), known for his aggressive Bitcoin purchasing strategy under the direction of Michael Saylor.

To date, Saylor has pioneered Microstrategy’s purchase of 528.185 BTC at a total cost of $ 35.63 billion, which resulted in an average purchase price of $ 67,458 per bitcoin. In the latest data, the value of the assets in the hands of the company is approximately 40.61 billion dollars, the current market price is approximately 12 %below the average purchase price of the company.

Despite this still profitable position on paper, a recent arrangement application reveals increasing financial pressure on the company if the market conditions deteriorate.

In the Microstrategy document dated April 7, the company said, “Since Bitcoin constitutes a large part of our balance sheets, we may need to sell Bitcoin to fulfill our financial obligations in time or at all, if we cannot provide equity or debt financing in time, and we may have to make such sales under our cost or in other way.

Microstrategy expects to record a damage that has not occurred close to $ 6 billion in the first quarter, but envisages to balance it with an income tax advantage of $ 1.69 billion. Nevertheless, in a statement, especially if Bitcoin prices continue to fall, the company’s future profitability was warned that it was uncertain.

“A significant decrease in the market value of our Bitcoin assets may adversely affect our ability to fulfill our financial obligations,” he added.

As of the end of March, Microstrategy has reported about $ 8 billion, and in addition to annual stock dividends of $ 150 million, it pays an annual interest rate of $ 35 million.

*It is not an investment advice.