MicroStrategy Is All-In With A 5M Bitcoin-Backed Loan to Purchase More Bitcoin
Nasdaq-listed MicroStrategy got another $205 million Bitcoin-collateralized loan from Silvergate Bank through a subsidiary to stack up on their Bitcoin holdings. “The interest-only term loan is secured by certain bitcoin held in MacroStrategy’s collateral account.”
The business intelligence firm announced Tuesday that its subsidiaries MacroStrategy obtained the Bitcoin-backed loan:
MicroStrategy CEO Michael Saylor sent the news out on Twitter himself on Tuesday:
MacroStrategy, a subsidiary of @MicroStrategy, has closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase #bitcoin. $MSTR $SIhttps://t.co/QYw2ZgeE3U
— Michael Saylor
(@saylor) March 29, 2022
https://platform.twitter.com/widgets.js
MicroStrategy’s statement detailed:
“Silvergate Bank has issued a $205 million term loan under its Silvergate Exchange Network (SEN) Leverage program to MacroStrategy LLC.
The interest-only term loan is secured by certain bitcoin held in MacroStrategy’s collateral account with a custodian mutually authorized by Silvergate and MacroStrategy.”
MacroStrategy will allocate the loan proceeds to purchase Bitcoin, pay fees, interest, and expenses related to the transaction.
Michael Saylor commented:
“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.”
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Source: igaming
