Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.
Microstrategy Buys 6,455 More Bitcoin – Now Has 138,955 BTC – Featured Bitcoin News
Microstrategy has purchased 6,455 bitcoins for approximately $150 million at an average price of $23,238 per coin. With its latest purchase, Microstrategy now has 138,955 bitcoins purchased at an average of $29,817 per coin. In addition, the company has also paid off its loan from troubled Silvergate Bank in full.
Micro strategy buys more Bitcoin
Nasdaq-listed Microstrategy Inc. (Nasdaq: MSTR) announced Monday that it has purchased 6,455 more bitcoins. CEO Michael Saylor tweeted:
Microstrategy repaid the $205 million Silvergate loan at a 22% discount. As of 3/23/23, MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per bitcoin and held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin.
In a filing with the US Securities and Exchange Commission (SEC) on Monday, the company stated that the 6,455 bitcoins were acquired between February 16 and March 23.
Repayment of Silvergate loans
The filing further explains that the Nasdaq-listed software company voluntarily pre-paid its loan from the failed Silvergate Bank. Microstrategy’s wholly-owned subsidiary, Macrostrategy, entered into a credit and security agreement with Silvergate on March 23 last year for a $205 million loan. “The loan was secured by certain bitcoin owned by Macrostrategy and a $5.0 million cash reserve account held by Macrostrategy at Silvergate,” the company noted.
Silvergate Bank was among the banks that ran into trouble this month. The crypto-friendly bank announced voluntary liquidation on March 8. A few days before the liquidation announcement, the bank shut down its crypto payment network, the Silvergate Exchange Network (SEN).
The two companies entered into an “Advance payment, waiver and payment to credit and security agreement” on March 24 for Microstrategy to pay off the loan. The SEC filing details:
Macrostrategy voluntarily prepaid Silvergate approx. $161.0 million (the “Payoff Amount”), in full repayment, satisfaction and release of the loan and all other obligations under the credit agreement.
“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,” Microstrategy clarified.
What do you think about Microstrategy buying more bitcoin and now has 138,955 btc? Let us know in the comments section below.
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