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MicroStrategy Subsidiary Borrows $205 Million from Silvergate Bank to Buy Bitcoin

Tue, 03/29/2022 - 13:04
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Yuri Molchan
A subsidiary of Michael Saylor's company has taken a Bitcoin-collaterized loan to stock up on BTC
MicroStrategy Subsidiary Borrows $205 Million from Silvergate Bank to Buy Bitcoin
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CEO of MicroStrategy and Bitcoin evangelist Michael Saylor has just tweeted that the company's subsidiary, MacroStrategy, has taken a loan of $205 million to acquire Bitcoin.

The loan is collateralized in BTC as well, according to the tweet.

Silvergate Bank lends to MacroStrategy

The article published by MicroStrategy says that the loan was taken from Silvergate Bank, a subsidiary of Silvergate Capital Corporation, which is a leader in providing innovative financial infrastructure solutions in the cryptocurrency field.

The bank has issued a $205 million loan to MacroStrategy as part of the Silvergate Exchange Network (SEN) Leverage program.

The loan has been secured by the Bitcoin held in the collateral account of MacroStrategy. The custodian who holds it is authorized by this company and Silvergate together.

The company will use the $205 million to acquire Bitcoin, as well as to pay fees, interest and all expenditures related to this purchase.

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MicroStrategy now holds $4.8 billion in Bitcoin

As reported by U.Today, on Feb. 1, Michael Saylor's business intelligence giant MicroStrategy purchased another Bitcoin lump worth $25 million—660 Bitcoin.

The company now holds a total of $4.8 billion worth of the leading digital currency.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.