Bitcoin Whale MicroStrategy Repays Silvergate Loan and Buys Another $150 Million Worth of BTC ⋆ ZyCrypto
Michael Saylor’s MicroStrategy has fully repaid the $161 million outstanding balance on its $205 million bitcoin-backed loan from defunct crypto-focused bank Silvergate.
The Virginia-based business intelligence firm also added another 6,455 Bitcoin to its already substantial holdings.
MicroStrategy increases stakes
MicroStrategy continues to add more bitcoin to its holdings despite recent market turmoil.
In a Form 8-K filed with the SEC today, MicroStrategy announced that it had acquired approximately 6,455 BTC at an average price of $23,238 per token between February 16th and March 23rd. MicroStrategy allocated $150 million to the recent purchase of its flagship cryptocurrency.
To date, the company has purchased 138,955 BTC. MicroStrategy has spent over $4.1 billion to grow its holdings, becoming the world’s largest corporate owner of BTC.
The announcement is crucial as the benchmark cryptocurrency is down nearly 60.86% from its all-time high of $69,044 set in November 2021. The price decline is largely due to the recent implosion of major US banks and Washington’s intensified crypto crackdown.
Silvergate and macro strategy
MacroStrategy, a subsidiary of MicroStrategy, received a $250 million loan from Silvergate Bank last March. The loan was provided via the Silvergate Exchange Network (SEN) Leverage program. The loan was secured by BTC worth approximately $820 million and had a scheduled maturity date of March 23, 2025.
By repaying the loan in full, MicroStrategy has essentially terminated its credit and security agreement. This means that the software company has received back the 34,619 bitcoins that were held as collateral against the loan.
“Upon Silvergate’s receipt of the disbursement amount, the credit agreement was terminated and Silvergate released its security interest in all of MacroStrategy’s assets as collateral for the loan, including the Bitcoin that served as collateral,” the SEC filing said.
MicroStrategy founder Michael Saylor, known in the crypto community for his unwavering belief in bitcoin, recently confirmed that the pioneer crypt “has no counterparty risk or impairment risk”, he tweeted. “MattKratter explains why every other asset is crashing against $BTC, highlights some positive market developments driving bitcoin adoption, and analyzes the $1 million bitcoin price forecast.”
