MicroStrategy Dispels Bitcoin Margin Call Myths with Strong Reserves
Recent market reactions to Bitcoin’s price fluctuations have sparked concerns about MicroStrategy’s financial stability, particularly regarding margin calls. However, these fears appear unfounded. The company’s CFO, Phong Le, clarified in May 2022 that a margin call would only be triggered if Bitcoin fell to $21,000. Even when Bitcoin dipped to $20,800 in June 2022, MicroStrategy remained stable, demonstrating its ability to withstand significant volatility. The company has a history of resilience, having survived a major stock drop and SEC charges in 2000 related to overstated revenues.
Another myth suggests MicroStrategy lacks sufficient financial cushioning to cover its obligations. This overlooks the $4 billion in high-yield perpetual securities the company launched in late 2025. These instruments aim to mitigate Bitcoin volatility and risk for investors. MicroStrategy’s strategy has long centered on Bitcoin, with aggressive acquisitions starting in August 2020. By September 2022, the company and its subsidiaries held 130,000 BTC, purchased at an average price of $30,639. Between August and September 2023, they acquired an additional 5,445 BTC for $147.3 million.
Contrary to claims of insufficient collateral, MicroStrategy maintains a substantial Bitcoin reserve. As of November 2025, the company owned over 650,000 BTC, valued at approximately $59.69 billion. This massive accumulation provides a strong buffer against market volatility. The company also acquired 149,880 BTC in November 2024 and 4,225 BTC in July 2025 at an average price of $111,827 per Bitcoin, further strengthening its position.
Despite reports of a 60% drop in shares by late November 2025, reducing the market capitalization to $49 billion, the company’s Bitcoin holdings remained valued at $56 billion. This discrepancy highlights the disconnect between market perception and the company’s actual asset value. MicroStrategy’s inclusion in the Nasdaq-100 in December 2024 reflects ongoing market confidence. The company continues to grow its Bitcoin treasury under the leadership of Phong Le, who succeeded Michael Saylor as CEO in 2022, with Saylor remaining as executive chairman.