MicroStrategy's Michael Saylor says he would consider buying more bitcoin

Published Wed, Jun 15 202212:04 PM EDT

MicroStrategy's Michael Saylor said he would consider buying more bitcoin even as the cryptocurrency's recent slump delivers a blow to the firm's $4 billion worth of holdings in the asset. "The company continues to generate cash flow and from time to time as we have excess cash, we're going to buy more," Saylor said on CNBC's "Squawk on the Street." "Our strategy is buy it and hold it and sweep our free cash flows into bitcoin." The software entrepreneur made his remarks as bitcoin sank closer to a key $20,000 level on Wednesday, representing a near 70% plunge from its November high. The plungemeans MicroStrategy's $4 billion bet is now worth $2.9 billion, implying unrealized losses of more than $1 billion . Those losses prompted fears that MicroStrategy will have to deal with a possible margin call that could mean a liquidation of the firm's bitcoin holdings. MicroStrategy took out a $205 million loan from crypto-focused bank Silvergate by posting some of its own bitcoin as collateral. A margin call means investors have to commit more funds to augment losses on a loan made with borrowed cash. But MicroStrategy on Tuesday denied it received a margin call . Saylor on CNBC said the firm is "comfortable" with a fortressed balance sheet and a well-managed margin load. "The margin call thing is much ado about nothing," Saylor said. "It's just made me Twitter famous. So I appreciate that. And the Twitter trolls love to beat up on me because it gets them engagement." The entrepreneur is still bullish on Bitcoin despite the recent plunge. Saylor encouraged investors to hold onto the volatile asset over the long term, saying that "nobody's ever lost money investing in Bitcoin for four years." "Bitcoin's backed by the most powerful secure computer network in the world. If I gave you $100 billion, you can't reproduce it, and it's beyond the nation state attack or corporate attack," Saylor said. "So once you understand that, and the fact that it's a singularity, there's nothing like it in the world, then yeah, this is an ideal entry point to get into this thing."