Coinbase and MicroStrategy Drop Sharply as Bitcoin Falls to Lowest Point in Months
While MicroStrategy (ticker: MSTR ) derives most of its revenue from software, the company has bet big on Bitcoin, holding more than 129,200 tokens as of March 31. The company’s strategy involves issuing debt to finance more Bitcoin purchases, but has warned that it will be forced to sell Bitcoin if it fails to generate enough cash flow to service the debt. “If the price of #BTC falls below $3,562 the company could post some other collateral,” tweeted CEO Michael Saylor in May. But he remained optimistic about Bitcoin’s future, tweeting on Friday that Bitcoin had yet to reach its peak.