by Silvergate Bank reportedly extended a $215 million credit to the MicroStrategy subdivision, MacroStrategy, in order to increase its BTC reserve. MicroStrategy’s subsidiary, known as MacroStrategy, secured the loan with a part of the BTC it has in its crypto reserve.
MicroStrategy Reports Its Purchase Of Bitcoin
After amassing over 124,000 BTC, MicroStrategy has borrowed against its assets in order to purchase further coins.
Michael Saylor, President of the company, revealed today that MacroStrategy which a branch of MicroStrategy, has finalized a loan of over $215 million with the Silvergate Bank. Michael Saylor, who is famous in the crypto world for his unwavering belief in BTC, noted that MacroStrategy used part of its BTC holdings to serve as a collateral for the transaction.
A news statement stated that the interest-free loan is “covered by some BTC kept in MacroStrategy’s security account” but did not specify the number. The information continued by saying that the loan will be for buying BTC and pay associated fees and other business costs.
The Silvergate Bank is among the leading crypto enterprises serving the rapidly expanding global market for virtual currencies. It provides loans that are Bitcoin-collateralized via a service, SEN Leverage. The investment giant obtained the financial aid via SEN Leverage.
“SEN Leverage enables us to raise our status as a major publicly traded firm investing in BTC,” Saylor stated. “By leveraging the credit facility, we’ve essentially converted our BTC into functional collateral, giving us a chance to continue executing on our business plan.”
MicroStrategy, Largest Holder Of BTC
The funding comes on the heels of Saylor’s company amassing over three years’ worth of BTC. The company MicroStrategy has grown to be the largest holder of BTC in the market with over 124,389 BTC as of 31st of December, 2021, after buying more of the coin in August 2020 during the pandemic.
Its debut purchase was among the factors which led to a rush in cryptocurrency in 2021 and gave way for notable organizations such as Block and Tesla to acquire BTC for the very first time. At the conclusion of 2021, BTC had attained a height of $69K, and El Salvador purchased it for its treasury.
The investment firm has attempted many audacious moves in the past months to amass monies to purchase further BTC, such as offering investors roughly $1.6 billion in redeemable notes and proposing an ordinary shares offering of $1 billion. The firm has primarily behaved in lockstep with BTC as a consequence of its massive accumulation. Though it is still far from its high price in 2021, it traded at over $511, a gain of 315 percent from the company’s first acquisition.
