Microstrategy, a Nasdaq-listed pro-bitcoin software business, revealed on March 29 that one of its subsidiaries- Macrostrategy had acquired a bitcoin-backed loan to purchase more BTC. Michael Saylor, CEO of Microstrategy, tweeted on March 29.
MacroStrategy, a subsidiary of @MicroStrategy, has closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase #bitcoin. $MSTR $SIhttps://t.co/QYw2ZgeE3U
— Michael Saylor⚡️ (@saylor) March 29, 2022
According to Microstrategy, Silvergate Bank has given a $205 million term loan to Macrostrategy LLC under its Silvergate Exchange Network (SEN) Leverage programme. According to the company, the interest-only term loan is secured by specific bitcoin kept in Macrostrategy’s collateral account with a custodian mutually authorised by Silvergate and Macrostrategy.
According to the terms of the agreement, Macrostrategy will utilise the loan to acquire bitcoins, pay fees, interest, and expenditures relating to the loan transaction, or for general corporate objectives of its or its parent business. SEN Leverage, which debuted in 2020, offers institutional-grade access to funding via US dollar loans collateralized by bitcoin.
Saylor stated that the SEN Leverage loan will allow us to strengthen our position as the biggest public business investor in bitcoin. We’ve effectively transformed our bitcoin into productive collateral by using the loan funds, allowing us to better execute on our company strategy, he added.
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- MicroStrategy continues its bitcoin buying spree
