MicroStrategy subsidiary borrowed $205 million to buy bitcoins

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The funds on the security of the company’s cryptocurrency were provided by Silvergate Bank

MicroStrategy subsidiary borrowed $205 million to buy bitcoins

30.03.2022 - 08:45

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What’s new? MacroStrategy, a subsidiary of MicroStrategy, has entered into an agreement with Silvergate Bank for a $205 million loan. All of the funds will go towards the purchase of bitcoins. MicroStrategy announced this in a press release published on the website.

The full version of the press release

What else is known about the deal? The funding is secured by bitcoins held on MacroStrategy’s balance sheet. The loans of this type are part of Silvergate Bank’s special program called SEN Leverage. Under the program, loans of $570,5 million had been issued by March 2022.

Silvergate Capital Corporation is a leading provider of innovative solutions and digital financial services for cryptocurrency companies. Microstrategy is a software developer and the largest bitcoin holder among public companies. As of March 30, 2022, MicroStrategy has 125 051 BTC worth $5,94 billion on its balance sheet.

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Editorial GetBlock Magazine

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