Bitcoin Whale MicroStrategy Repays Silvergate Loan And Buys Another $150 Million Worth Of BTC

Crypto Community Fears Centralization As MicroStrategy’s Bitcoin Holdings Hit 132,500 BTC

Michael Saylor’s MicroStrategy has fully repaid the $161 million outstanding balance on its $205 million bitcoin-collateralized loan from defunct crypto-focused bank Silvergate.

The Virginia-based business intelligence firm has also added another 6,455 Bitcoin to its already substantial holdings.

MicroStrategy Increases Holdings

MicroStrategy continues adding more bitcoin to its holdings despite recent market trepidation.

In a Form 8-K filed with the SEC today, MicroStrategy announced it had acquired roughly 6,455 BTC at an average price of $23,238 per token between February 16 and March 23. MicroStrategy allocated $150 million to its recent purchase of the flagship cryptocurrency.

To date, the company has bought 138,955 BTC. MicroStrategy has spent over $4.1 billion to grow its holdings, becoming the world’s largest corporate holder of BTC.

MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin.

— Michael Saylor⚡ (@saylor) March 27, 2023

The announcement is crucial as the benchmark cryptocurrency is down nearly 60.86% from its historic high of $69,044 set in November 2021. The downward price action is largely due to the recent implosion of major U.S. banks and Washington’s intensified crypto crackdown.

Silvergate And MacroStrategy

MacroStrategy, a subsidiary of MicroStrategy, received a $250 million loan from Silvergate Bank last March. The loan was given via the Silvergate Exchange Network (SEN) Leverage program. The loan was collateralized with approximately $820 million worth of BTC and had a scheduled maturity date of March 23, 2025.

By fully repaying the loan, MicroStrategy has basically ended its credit and security agreement. This means the software company has recovered the 34,619 bitcoins that were being held as collateral against the loan.

“Upon Silvergate’s receipt of the payoff amount, the credit agreement was terminated, and Silvergate released its security interest in all of MacroStrategy’s assets collateralizing the loan, including the Bitcoin that was serving as collateral,” the SEC filing reads.

MicroStrategy founder Michael Saylor, known in the crypto community for his unshakeable conviction in bitcoin, recently affirmed that the pioneer crypto “has no counterparty risk or debasement risk,” he tweeted. “MattKratter explains why every other asset is crashing against $BTC, highlights some positive market developments driving bitcoin adoption, and analyzes the $1 million bitcoin price forecast.”

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