Microstrategy intends to buy more bitcoin after taking out a new loan
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Answer Microstrategy intends to buy more bitcoin after taking out a new loan
Silvergate Bank has provided a $205 million term loan, secured by the company’s bitcoin holdings, through the SEN leverage program to Microstrategy.
Microstrategy wants to use the funds to accumulate more bitcoin.
came in press release It was shared on March 29 that the banking subsidiary of Silvergate Capital Corporation has agreed to provide funds and grant loans against the bank’s holdings of bitcoin stored by Microstrategy.
The custodian was mutually authorized by the two entities involved in the transaction.
The terms state that Microstrategy will use the funds to buy more parts of the larger cryptocurrency.
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It will also pay fees, interest, and expenses related to loan transactions or finance certain general corporate purposes.
Silvergate CEO Alan Lane commented:
We are pleased to add MicroStrategy to our growing list of SEN leveraged borrowers.
Their innovative approach to treasury management is an exceptional example of how organizations can use bitcoin to support and grow their businesses.
Launched in 2020, SEN is an institutional-grade lending service that has provided nearly $600 million in dollar loans secured by bitcoin.
Michael Saylor, CEO of Microstrategy, noted:
The funds will provide our entity with the ability to strengthen our position as a leading public company investor in Bitcoin.
Nasdaq-listed business intelligence giant MicroStrategy is the largest holder of bitcoin, with nearly $6 billion worth of bitcoin.
The last purchase came in February for $25 million.
Silvergate Bank has been involved in the cryptocurrency industry for a while.
Recently, Silvergate Bank acquired Facebook’s brainchild project Diem and released plans to release its own digital stablecoin soon.
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