MicroStrategy, a business intelligence company and prominent Bitcoin investor, is accumulating additional BTC in response to the current revival of the cryptocurrency market.
On March 27, Michael Saylor, the co-founder and ex-CEO of MicroStrategy, took to Twitter to declare that the company had paid back its $205 million debt to Silvergate.
Saylor emphasized that MicroStrategy repaid the Silvergate loan at a 22% discount, citing an 8-K statement with the United States Securities and Exchange Commission.
According to the former CEO, the corporation also acquired a considerable quantity of Bitcoin, purchasing 6,455 BTC for $150 million, or an average price of $23,238 per coin as of March 23. According to the document, MicroStrategy acquired its most recent batch of Bitcoin between February 16 and March 23, 2023.
Following the purchase, MicroStrategy has grown its total Bitcoins holdings to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin, Saylor added.
MacroStrategy, a subsidiary of MicroStrategy, got a $205 million term loan from Silvergate Bank in March 2022 via the Silvergate Exchange Network Leverage program. The loan was secured by Bitcoin belonging to MacroStrategy, and its maturity date was set for March 23, 2025.
In accordance with the credit agreement terms, MacroStrategy was obligated to keep the loan-to-collateral value ratio under 50%. On March 24, 2023, MacroStrategy and Silvergate reached an agreement for prepayment, waiver, and payoff to credit and security agreement. As per the agreement, MacroStrategy fully prepaid Silvergate approximately $161 million to settle the outstanding loan.
According to the filing, upon receiving the payoff amount, Silvergate terminated the credit agreement and released its security interest in all of MacroStrategy’s assets that served as collateral for the loan, including Bitcoin.
MicroStrategy also disclosed in the filing that it has entered into an agreement with Cowen & Company and BTIG to sell class A common stock worth a total of $500,000,000.Approximately $339 million in net proceeds were generated for MicroStrategy as a result of the issuance and sale of a total of 1,348,855 shares in accordance with the terms of the sales agreement.
MicroStrategy’s most recent Bitcoin acquisition is apparently the first of its kind in 2023. MicroStrategy acquired 2,395 Bitcoins at an average price of $17,181 between November 1 and December 21, 2023, for a total of $42.8 million.