Nasdaq-listed business intelligence firm MicroStrategy, which has invested nearly $4 billion to buy 129,218 BTC, has said it did not receive a margin call against a $205 million loan it took in March backed by Bitcoin.

Embattled cryptocurrency lender Celsius Network has reportedly hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise it on possible solutions for its financial problems.

Popular cryptocurrency exchange Coinbase has said it will be reducing its workforce by 18% after cryptocurrency markets lost more than $2 trillion from their peak in a bid to “stay healthy during this economic downturn.”

Top stories in the Crypto Roundup today:

• MicroStrategy Says It Hasn’t Received a Margin Can on Its Bitcoin Loan
• Celsius Network Hires Restructuring Lawyers
• Coinbase to Reduce Workforce by 18%

MicroStrategy Says It Hasn’t Received a Margin Can on Its Bitcoin Loan

Nasdaq-listed business intelligence firm MicroStrategy, which has invested nearly $4 billion to buy 129,218 BTC, has said it did not receive a margin call against a $205 million loan it took in March backed by Bitcoin.

Bitcoin’s price dropped to $20,700 this week at a time in which central banks are starting to take a hawkish stance to battle inflation and crypto firms are laying off staff to survive the bear market. MicroStrategy shares have been dropping along with the price of the flagship cryptocurrency.

The firm borrowed $205 million in a three-year loan from crypto-focused bank Silvergate in March to buy more BTC, and used its existing Bitcoin to secure the loan. MicroStrategy’s chief financial officer said in May that if BTC were to drop below $21,000 it could trigger a margin call. The company said:

“We can always contribute additional bitcoins to maintain the required loan-to-value ratio … even at current prices, we continue to maintain more than sufficient additional unpledged bitcoins to meet our requirements under the loan agreement.”

MicroStrategy’s average purchase price for its Bitcoin sits at $30,700. The company has about $2.2 billion in debt and roughly $44 million in annual interest expenses. It’s expected to generate $90 million of free cash flow this year, according to a BTIG analyst.

Celsius Network Hires Restructuring Lawyers

Embattled cryptocurrency lender Celsius Network has reportedly hired restructuring attorneys from law firm Akin Gump Strauss Hauer & Feld LLP to advise it on possible solutions for its financial problems.

The move comes after Celsius Network halted withdrawals, swaps, and transfers for its users over extreme market conditions. The firm is said to be looking for possible financing options from investors, while exploring other strategic alternatives including a financial restructuring.

There have been questions surrounding Celsius’ high yields and its exposure to Terra’s ecosystem ahead of its collapse, as well as questions surrounding its losses after the BadgerDAO hack.

Coinbase to Reduce Workforce by 18%

Popular cryptocurrency exchange Coinbase has said it will be reducing its workforce by 18% after cryptocurrency markets lost more than $2 trillion from their peak in a bid to “stay healthy during this economic downturn.”

In a blog post, Coinbase CEO Brian Armstrong announced the decision, noting we “appear to be entering a recession after a 10+ year economic boom,” which could lead to “another crypto winter, and could last for an extended period.”

Armstrong noted that past crypto winters saw Coinbase’s trading revenue decline significantly, meaning the company is preparing “for the worst so we can operate the business through any environment.”

The CEO also took responsibility for mistakes that led to the layoffs, and said it will take time for Coinbase to “adjust to this new scale before growing again.”

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