Aggressive bitcoin investor and American software firm MicroStrategy says it hasn’t received a margin call against a $205 million bitcoin-backed loan it took in March.

A margin call is a situation where an investor has to commit more funds to avoid losses on a trade made with borrowed cash.

Investors have been concerned that MicroStrategy, which has bet $4 billion on bitcoin, would be forced to liquidate some of its bitcoin holdings if faced with a margin call.

“The margin call thing is much ado about nothing,” Michael Saylor, MicroStrategy’s CEO and founder, told CNBC’s “Squawk on the Street” Wednesday.

In March, MicroStrategy borrowed $205 million in a three-year loan from crypto-focused bank Silvergate to buy more bitcoin, using its own bitcoin holdings to secure the loan.

MicroStrategy’s chief financial officer previously highlighted in May that if bitcoin was to drop below $21,000, it could trigger a margin call.

The world’s largest cryptocurrency briefly plunged below $21,000 on Tuesday in this week’s big selloff.

Saylor said the firm was “10x overcollateralized” on its bitcoin-backed loan.

“We feel like we have a fortress balance sheet,” he said. “We’re comfortable and the margin load is well managed.”

Shares of MicroStrategy, considered by some as a proxy for investing in bitcoin, have tumbled 70% since the start of the year.

As at March 31, MicroStrategy held 129,218 bitcoins, each purchased at an average price of $30,700, according to a company filing. The company is the largest corporate investor of bitcoin.

Bitcoin was trading at $21,127.56 on Wednesday, having briefly tumbled close to $20,000 earlier in the day. At current prices, MicroStrategy is down more than $1 billion on its bitcoin investment.

Saylor has previously said MicroStrategy has more than enough bitcoin to cover its loan requirements. He said bitcoin prices would need to fall below $3,500 before more collateral would be required. He tweeted Tuesday that the company anticipated volatility and structured its balance sheet so that it can remain invested.

BY: Abigail Ng