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MicroStrategy to buy $205 million Bitcoin

  • MacroStrategy secured a $205 million BTC collateralised loan from US-based Silver Bank.
  • The Michael Saylor led company is expected to use the funds to buy Bitcoin, which is part of the loan facility’s terms and conditions.

MicroStrategy (Nasaq: MSTR) is set to buy more than $200 million worth of Bitcoin in a purchase that will happen via the business intelligence company’s subsidiary MacroStrategy LLC.

The firm’s plans for an additional haul of BTC follows MacroStrategy securing a $205 million collateralised loan from Silver Bank, a digital assets-focused arm of US-based Silvergate Capital Corporation.

Silvergate provided the loan via its Silvergate Exchange Network (SEN) Leverage program, an “interest-only term loan” that’s secured by Bitcoin held in MacroStrategy’s collateral account.

According to a press statement released on Tuesday, the collateralised BTC will be held by “a custodian mutually authorized by Silvergate and MacroStrategy.”

MicroStrategy CEO Michael Saylor said the loan offers a chance for the company to add to its Bitcoin holdings and cement its position among Wall Street’s pro-Bitcoin companies.

Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy,” he added.

MicroStrategy first bought Bitcoin in 2020 and is the biggest publicly traded company to hold the flagship crypto with about $3.5 billion worth of BTC purchased so far. 

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