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MicroStrategy has bought over 6,000 bitcoins after fully satisfying its sizable Silvergate debt obligation.
Microstrategy Incorporated (NASDAQ: MSTR) recently announced its bitcoin (B T c) holdings after the recent Silvergate Bank (NYSE:SI) loan repayment. The BTC-savvy business intelligence firm has reportedly bought an additional 6,455 bitcoins for $150 million. The purchase, which also translates to an average price of $23,238 per token, brings MicroStrategy’s total bitcoin holdings to 138,955 BTC. The total value of the company’s bitcoin cash is $4.1 billion at an average of $29,817 per coin.
MicroStrategy’s latest bitcoin purchase comes amid the digital currency market’s ongoing recovery. Today, the company’s shares were up 0.9% in premarket trading on March 27.
CEO Michael Saylor sheds more light on debt repayment and bitcoin growth
Today, co-founder of mobile software and cloud-based services platform Michael Saylor announced that Microstrategy has repaid its $205 million Silvergate loan. According to Saylor, a former CEO of MicroStrategy, the company paid off large loans to the failed bank at a 22% discount. By paying off the 2-year Silvergate loan, MicroStrategy also freed up 34,619 bitcoins previously held as collateral. A regulatory filing with the US Securities and Exchange Commission (seconds) Reading:
“On March 24, 2023, MacroStrategy and Silvergate entered into a Prepayment, Waiver and Payoff for Credit and Security Agreement, under which MacroStrategy will voluntarily pay Silvergate approximately $161.0 million (the “Payoff Amount”), in full repayment, satisfaction and discharge prepaid. of the loan and all other obligations under the credit agreement.
The document further states:
“Upon Silvergate’s receipt of the repayment amount, the credit agreement was terminated, and Silvergate released its security interest in all of MacroStrategy’s assets collateralizing the loan, including bitcoin serving as collateral.” Was.”
The Silvergate loan was set to mature in two years and carried interest equal to 3.70% plus the SOFR 30-day average. Three days ago the floating rate was equal to 8.27%.
MicroStrategy generated more than $300 million from the sale of its shares, amid its debt repayments. According to the company, this sale took place between January 1 and March 24 this year. A MicroStrategy regulatory filing addressing the shares development said that “MicroStrategy issued and sold a total of 1,348,855 shares under the sale agreement for total net proceeds to MicroStrategy (less sales commissions and expenses) of approximately $339.4 million.”
The Virginia-based business intelligence company revealed that the proceeds from the share sale program fully funded the loan service. In addition, MicroStrategy said it repaid the debt using $5 million in the MacroStrategy Cash Reserve account at Silvergate.
MicroStrategy denied having assets with Silvergate
In early March, MicroStrategy denied Any assets held with Silvergate Bank. At the time, the company explained that it was in no rush to repay the loan due to the looming deadline. Citing a 2025 due date, MicroStrategy stressed that the terms of the loan would remain the same even in the event of a potential bankruptcy.
Nevertheless, MicroStrategy also acknowledged at the time that it might attract more regulatory scrutiny because of Silvergate’s then-uncertain status.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.