MicroStrategy to Buy More BTC Following $205M Bitcoin-Collaterized Loan From Silvergate

Silvergate Bank has provided a $205 million term loan, collateralized by BTC holdings, through its SEN leverage program to MicroStrategy’s subsidiary – MacroStrategy. The company wants to use the funds to accumulate more bitcoins.

• The press release shared on March 29 informed that Silvergate Capital Corporation’s banking subsidiary has agreed to provide the funds in one of the largest loans secured by certain bitcoin holdings stored by a corporation. The custodian has been “mutually authorized” by the two entities involved in the deal.
• The terms dictate that MacroStrategy – MicroStrategy’s subsidiary – will use the funds to purchase more portions of the primary cryptocurrency. It will also pay fees, interest, and expenses related to the loan transactions or fund some of the firm’s general corporate purposes.

• “We are thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers. Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.” – commented CEO of Silvergate, Alan Lane.

• Launched in 2020, SEN Leverage is an institutional-grade lender that has provided nearly $600 million through US dollar loans collateralized in bitcoin.
• MicroStrategy’s CEO, Michael Saylor, noted that the funds will provide his entity the ability to “further our position as the leading public company investor in bitcoin.”
• The NASDAQ-listed business intelligence giant is the largest corporate BTC holder, owning nearly $6 billion worth of the asset. The latest purchase came in February, worth $25 million.
• Silvergate Bank has been involved with the crypto industry for a while. Most recently, the company acquired Facebook’s failed brainchild – Diem – and released plans to issue its own stablecoin.