- The money will be used to buy additional bitcoins for the firm.
- The last purchase was in February when a $25 million transaction was made.
A subsidiary of MicroStrategy, named MacroStrategy, has received a $205 million term loan from Silvergate Bank, collateralized by its BTC holdings, under its SEN leverage program. The money will be used to buy additional bitcoins for the firm.
Silvergate Capital Business’s banking division has agreed to give the funds in one of the biggest loans secured by specific bitcoin holdings kept by a corporation, according to a press statement released on March 29th. The custodian has been “mutually authorized” by the two parties engaged in the transaction.
Leading Investor in Bitcoin
MicroStrategy’s subsidiary, MacroStrategy, has agreed to spend the cash to buy additional main cryptocurrency chunks. Besides that, it will cover the costs of the loan transactions and support a few of the company’s basic business goals.
CEO of Silvergate, Alan Lane, stated:
“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.”
Since its inception in 2020, SEN Leverage, an institutional level lender, has given borrowers more than $600 million in bitcoin-denominated US dollar loans. Saylor said the funding would allow his business to “further our position as the leading public company investor in bitcoin.”
The business intelligence giant, listed on the NASDAQ, is the biggest corporate owner of BTC, worth approximately $6 billion. The last purchase was in February when a $25 million transaction was made. Since the beginning, Silvergate Bank has been actively engaged in the cryptocurrency market. For example, Diem, Facebook’s unsuccessful project, was recently bought by the corporation, and plans to launch its own stablecoin were announced lately.
