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 owns 138,955 bitcoins purchased at an average of $29,817 per coin. In addition, the company also paid off its loan from troubled Silvergate Bank in full.
Microstrategy buys more Bitcoin
Nasdaq-listed Microstrategy Inc. (Nasdaq: MSTR) announced Monday that it has acquired 6,455 more bitcoins. CEO Michael Saylor tweeted:
Microstrategy repaid its $205 million Silvergate loan at a 22% discount. As of 3/23/23, MSTR acquired an additional ~6,455 bitcoins for ~$150 million at an average of ~$23,238 per bitcoin and held ~138,955 BTC acquired for ~$4.14 billion at an average of ~$29,817 per bitcoin.
in a presentation With the US Securities and Exchange Commission (SEC) on Monday, the company detailed that the 6,455 bitcoins were acquired between February 16 and March 23.
Silvergate Loan Repayment
The filing further explains that the Nasdaq-listed software company voluntarily prepaid 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 of last year for a $205 million loan. “The loan was collateralized by certain bitcoin owned by Macrostrategy and a $5.0 million cash reserve account maintained by Macrostrategy at Silvergate,” the company noted.
Silvergate Bank was among the banks that ran into trouble this month. The cryptocurrency-friendly bank announced voluntary liquidation on March 8. A few days before its liquidation announcement, the bank canceled its crypto payment network, the Silvergate Exchange Network (SEN).
The two companies entered into a “Credit and Security Prepayment, Waiver and Cancellation Agreement” on March 24 for Microstrategy to repay the loan. The SEC filing details:
Macrostrategy voluntarily prepaid to Silvergate approximately $161.0 million (the ‘Settlement Amount’), in full payment, satisfaction and performance of the Loan and all other obligations under the Credit Agreement.
“Upon Silvergate’s receipt of the settlement amount, the credit agreement was terminated and Silvergate released its security interest in all of Macrostrategy’s assets collateralizing the loan, including the bitcoin serving as collateral,” Microstrategy clarified.
What do you think about Microstrategy buying more bitcoins and now has 138,955 btc? Let us know in the comments section.
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