MicroStrategy To Buy More Bitcoin Following $205M Bitcoin Collaterized Loan
Michael Saylor’s MicroStrategy is buying more Bitcoin, this time $205 million’ worth via a Bitcoin collateralized loan:
MicroStrategy to Buy More BTC Following $205M Bitcoin-Collaterized Loan From Silvergate
Silvergate Bank has provided a $205 million term loan, collateralized by BTC holdings, through its SEN leverage program to MicroStrategy’s subsidiary – MacroStrategy. The company wants to use the funds to accumulate more bitcoins.
- The press release shared on March 29 informed that Silvergate Capital Corporation’s banking subsidiary has agreed to provide the funds in one of the largest loans secured by certain bitcoin holdings stored by a corporation. The custodian has been “mutually authorized” by the two entities involved in the deal.
- The terms dictate that MacroStrategy – MicroStrategy’s subsidiary – will use the funds to purchase more portions of the primary cryptocurrency. It will also pay fees, interest, and expenses related to the loan transactions or fund some of the firm’s general corporate purposes.
“We are thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers. Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.” – commented CEO of Silvergate, Alan Lane.