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.
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
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.
Arman ShirinyanMicroStrategy 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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