Amid the recent recovery of the cryptocurrency market; MicroStrategy, a business intelligence firm and major Bitcoin (BTC) investor, is acquiring more BTC.
MicroStrategy co-founder and former CEO, michael saylorannounced on Twitter on March 27 that the company had repaid Silvergate’s $205 million loan.
Citing a Form 8-K filed with the US Securities and Exchange Commission (SEC), Saylor noted that MicroStrategy repaid Silvergate’s loan at a 22% discount.
The company also acquired a significant stash of Bitcoin, buying 6,455 BTC for $150 million, or at an average price of $23,238 per coin as of March 23, the former CEO said. According to the presentation, MicroStrategy acquired your recent batch of Bitcoin between February 16, 2023 and March 23, 2023.
With this purchase, MicroStrategy has increased its total Bitcoin holdings to 138,955 BTC, purchased for $4.1 billion at an average price of $29,817 per coin, Saylor said.
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. https://t.co/ALp9VLkTpt
—Michael Saylor⚡️ (@saylor) March 27, 2023
As previously announced, MacroStrategy, a subsidiary of MicroStrategy, received a $205 million term loan from Silvergate Bank under its Silvergate Exchange Network Leverage program in March 2022. The loan was collateralized by certain Bitcoin owned by MacroStrategy and had an expected maturity date of March 23, 2025 .
Under the terms of the credit agreement, MacroStrategy was required to maintain a loan-to-value ratio of the collateral of less than 50%. On March 24, 2023, MacroStrategy and Silvergate entered into a credit and guarantee prepayment, waiver and liquidation agreement, pursuant to which MacroStrategy voluntarily prepaid to Silvergate approximately $161 million in full repayment.
“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 the Bitcoin that served as collateral,” the statement read.
In the presentation, MicroStrategy also mentioned that the company has reached an agreement with two companies – Cowen and Company and BTIG – to sell their aggregated Class A common shares for $500 million. Based on the latest updates, MicroStrategy issued and sold a total of 1,348,855 shares under the sale agreement for aggregate net proceeds to MicroStrategy of approximately ISD 339 million.
MicroStrategy’s latest Bitcoin purchase is apparently the first such transaction so far in 2023. The previous purchase took place in late December 2023, with MicroStrategy’s purchase of 2,395 BTC at an average price of USD 17,181 for a total of USD 42.8 million during the period between November 1 and December 21.
MicroStrategy did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.
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