Bitcoin nears MicroStrategy 'margin call' price

SINGAPORE : 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.

If 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. It was unclear if the price moves had any consequences for MicroStrategy, or if the firm already provided more bitcoin or cash to secure the loan. The company did not immediately respond to an emailed request for comment outside business hours.MicroStrategy's Le in May said the firm had 95,643"unencumbered bitcoin" that it could use as extra collateral.

Nevertheless the situation - even if it does not result in MicroStrategy selling anything - was enough to keep the mood nervous in jittery cryptocurrency markets.

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