MicroStrategy Pays off Silvergate Loan and Doubles Down on Bitcoin (BTC) Investment
Michael Saylor’s MicroStrategy, has triumphantly repaid the $161 million outstanding balance on its $205 million Bitcoin-collateralized loan from the now-defunct crypto-focused bank Silvergate. In true Saylor fashion, the Virginia-based business intelligence firm has fearlessly added another 6,455 Bitcoin to its already gargantuan holdings.
MicroStrategy’s Ever-Expanding Bitcoin Empire
Undeterred by market volatility, MicroStrategy continues to amass Bitcoin with a bullish conviction that’s nothing short of legendary. In a Form 8-K filed with the SEC today, MicroStrategy announced it had acquired approximately 6,455 BTC at an average price of $23,238 per token between February 16 and March 23. The company allocated a cool $150 million into another Bitcoin purchase.
With this latest acquisition, MicroStrategy now boasts a jaw-dropping 138,955 BTC. The firm has invested over $4.1 billion in Bitcoin, securing its position as the world’s largest corporate holder of the digital gold.
The announcement is particularly noteworthy considering the benchmark cryptocurrency is down almost 60.86% from its historic high of $69,044 set in November 2021. The downtrend can be attributed to the recent implosion of major U.S. banks and Washington’s intensified crypto crackdown.
Silvergate Loan Repayment and MacroStrategy’s Growing Dominance
MacroStrategy, MicroStrategy’s subsidiary, obtained a $250 million loan from Silvergate Bank last March. The loan was extended via the Silvergate Exchange Network (SEN) Leverage program and collateralized with approximately $820 million worth of BTC. The loan had a scheduled maturity date of March 23, 2025.
By fully repaying the loan, MicroStrategy has effectively terminated its credit and security agreement. As a result, the software company has regained control of the 34,619 Bitcoins that were held as collateral against the loan.
The SEC filing reads, “Upon Silvergate’s receipt of the payoff amount, the credit agreement was terminated, and Silvergate released its security interest in all of MacroStrategy’s assets collateralizing the loan, including the Bitcoin that was serving as collateral.”