Bitcoins plunge spells trouble for the dot-com era entrepreneur who went all in
Summary
Having once lost $6 billion at the height of the dotcom bubble, software entrepreneur Michael Saylor is no stranger to volatility in the financial markets. The worlds biggest cryptocurrency briefly tumbled below $21,000 Tuesday, a key level at which MicroStrategy would be faced with a possible margin call that investors fear could force the company to liquidate its bitcoin holdings. Thats turned out to be a risky gamble, with digital currencies now moving in lockstep with stocks and other assets plunging amid fears of an aggressive interest rate hiking cycle from the Federal Reserve. To add to MicroStrategys woes, the company now faces whats known as a "margin call," a situation where an investor has to commit more funds to avoid losses on a trade augmented with borrowed cash. He posted a new profile picture on Twitter Monday showing his face with lasers coming out of his eyes — a nod to a meme signaling bullishness on bitcoin.