How MicroStrategy released $1B Worth of Bitcoin by Repaying Silvergate Loan

MicroStrategy has just prepaid its remaining bitcoin-collatralized loan to collapsed Silvergate Bank at a 22% discount.

Enterprise analytics platform MicroStrategy has just prepaid its remaining bitcoin-collateralized loan to collapsed Silvergate Bank at a 22% discount.

As per the filing by the United States Securities and Exchange Commission (SEC), the company has prepaid the remaining amount on its $205 million loan for $161 million. It reads:

MicroStrategy voluntarily prepaid Silvergate approximately $161 million, in full repayment, satisfaction, and discharge of the Loan and all other obligations under the Credit Agreement.”

Notably, the Nasdaq-listed company entered a Credit and Security Agreement with Silvergate Bank for a $205 million bitcoin-collateralized loan in March 2022. As per the loan agreement, MicroStrategy has gained back custody of its 34,619 BTC, worth around $953 million, held as collateral. 

It is interesting to note that the company sold shares to raise $339.4 million this year and used the proceeds to pay back the loan from Silvergate.

On Monday, MicroStrategy’s co-founder and famous Bitcoin supporter Michael Saylor revealed that the company has done some heavy shopping over the past five weeks, purchasing 6,455 BTC for around $150 million. These were acquired for an average price of $23,238 per coin. 

With the latest purchase, MicroStrategy now holds 138,955 BTC, worth around $3.88 billion, maintaining its position as the world’s largest bitcoin holding company.

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