MicroStrategy subsidiary obtains $205M loan from Silvergate to buy more Bitcoins

With plans to add more Bitcoins to its balance sheet, business intelligence firm MicroStrategy’s subsidiary MacroStrategy has now acquired a loan of $205 million from Silvergate Bank, the banking unit of Silvergate Capital Corporation.

According to the latest announcement, the loan was obtained through Silvergate’s Exchange Network (SEN) Leverage program, which offers access to capital through U.S. dollar loans collateralized by bitcoin. MacroStrategy has obtained the funds by collateralizing $820 million worth of bitcoin for the interest-only term loan.

Michael Saylor, Chairman and Chief Executive of MicroStrategy, said in the press release:

“The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin. Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy.”

Nasdaq-listed firm MicroStrategy is presently one of the most, if not the most, bullish corporate investors of Bitcoin. The company holds more than 125,051 bitcoins following the acquisition of 660 Bitcoins during this year’s January market crash.

“As of January 31, 2022, the Company held approximately 125,051 bitcoins that were acquired at an aggregate purchase price of $3.78 billion and an average purchase price of approximately $30,200 per bitcoin,” a regulatory filing by the company revealed at the time.

Silvergate Bank made headlines earlier last month after purchasing the intellectual property rights and other technology assets of Meta’s dissolved stablecoin project Diem.

MicroStrategy has purchased an additional 660 bitcoins for ~$25.0 million in cash at an average price of ~$37,865 per #bitcoin. As of 1/31/22 we #hodl ~125,051 bitcoins acquired for ~$3.78 billion at an average price of ~$30,200 per bitcoin. $MSTRhttps://t.co/bF6VImC0Qy

— Michael Saylor (@saylor) February 1, 2022

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