Forget the Potential Margin Call: Here's What MicroStrategy Investors Should Be Thinking About
MicroStrategy (NASDAQ: MSTR) it may technically be an enterprise software company, though founder and Chief Executive Officer Michael Saylor is increasingly fixated on Bitcoin (CRYPTO: BTC). The end result is MicroStrategy has taken nearly $4 billion real U.S. dollars and purchased more than 129,000 Bitcoins over the past two years.
However, MicroStrategy didn't buy Bitcoin with money it just had lying around -- the company borrowed most of it. One of its loans is at risk because the price of Bitcoin has plunged roughly 50% in the past three months. Thus a potential margin call is what investors are talking about these days.
And yet, I don't believe this is the biggest concern for MicroStrategy. The great investor Warren Buffett recently said something that all MicroStrategy shareholders should take to heart.
Source Fool.com
