Michael Saylor, CEO of MicroStrategy, announcement that the company’s subsidiary, MacroStrategy, borrowed $205 million to acquire Bitcoin.
Macrostrategy receives $205 million collateral loan
According to a MicroStrategy article, the loan was provided by Silvergate Bank, a subsidiary of Silvergate Capital Corporation, a leading provider of innovative financial infrastructure solutions in the cryptocurrency space. MacroStrategy received a $205 million loan from the bank under the Silvergate Exchange Network (SEN) leverage program.
The $205 million will be used to purchase Bitcoin and cover fees, interest, and other costs associated with the transaction. The loan was secured by Bitcoin held in MacroStrategy’s collateral account. This company and Silvergate have authorized the custodian that holds the Bitcoin.
— Michael Saylor⚡️ (@saylor) March 29, 2022
How Much Bitcoin Does Microstrategy Hold?
MicroStrategy has continued to amass Bitcoin in recent months, and its CEO has become one of Bitcoin’s most ardent supporters. Saylor announced MicroStrategy’s latest BTC purchase on February 1. The company currently holds a total of $4.8 billion in the major digital currency.
“The SEN Leverage Loan gives us the opportunity to strengthen our position as the leading public investor in bitcoin,” MicroStrategy CEO Michael Saylor said in the press release. “Using the capital from the loan, we have effectively turned our bitcoin into productive collateral, allowing us to continue to execute our business strategy.”