MicroStrategy Subsidiary Obtains $205 Collateral Loan to Buy More BTC


  • MacroStrategy secured a $205 million BTC secured loan from US-based Silver Bank.
  • The Michael Saylor-led company is expected to use the funds to purchase Bitcoin, which is part of the terms and conditions of the loan facility.

MicroStrategy (Nasaq: MSTR) is set to buy more than $200 million worth of Bitcoin in a purchase that will be made through the subsidiary of economic intelligence firm MacroStrategy LLC.

The company’s plans for additional BTC transport follow MacroStrategy securing a $205 million secured loan from Silver Bank, a digital asset-focused arm of US-based Silvergate Capital Corporation.

Silvergate provided the loan through its Silvergate Exchange Network (SEN) leverage program, an “interest-only term loan” secured by Bitcoin held in MacroStrategy’s collateral account.

According to a press release on Tuesday, the collateralized BTC will be held by “a custodian mutually authorized by Silvergate and MacroStrategy.”

MicroStrategy CEO Michael Saylor said the loan offered the company a chance to increase its Bitcoin holdings and solidify its position among pro-Bitcoin companies on Wall Street.

” By using the loan capital, we have effectively turned our bitcoin into productive collateral, allowing us to continue to execute our business strategy. “, he added.

MicroStrategy first purchased Bitcoin in 2020 and is the largest publicly traded company to hold the flagship crypto with approximately $3.5 billion worth of BTC purchased so far.





Source link -95