MicroStrategy Faces a Big Threat as Bitcoin Slumps

Updated June 14, 2022 9:14 am ET / Original June 14, 2022 4:25 am ET

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MicroStrategy, the business-intelligence software maker that borrowed money to invest in Bitcoin as an inflation hedge, is facing a growing threat of a margin call as the cryptocurrency’s value continues to fall.

Shares of MicroStrategy (ticker: MSTR) plummeted more than 25% on Monday and fell 0.6% in premarket trading Tuesday. The company owns more than 129,200 Bitcoin tokens and said it would face a margin call—a demand from creditors for a bigger deposit to cover possible losses—if the cryptocurrency slips below $21,000.

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