MicroStrategy, a business intelligence firm and major Bitcoin (BTC) investor, is acquiring more BTC amid the recent cryptocurrency market recovery.
MicroStrategy co-founder and former CEO Michael Saylor took to Twitter on March 27 to announce that the firm has repaid its $205 million loan to Silvergate.
Citing a form 8-K filing with the United States Securities and Exchange Commission, Saylor stressed that MicroStrategy repaid the Silvergate loan at a 22% discount.
The company also acquired a significant stash of Bitcoin, purchasing 6,455 BTC for $150 million, or at an average price of $23,238 per coin as of March 23, the former CEO said. According to the filing, MicroStrategy acquired its latest batch of Bitcoin between Feb. 16, 2023 and March 23, 2023.
With the purchase, MicroStrategy has increased its total Bitcoins holdings to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin, Saylor said.
MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin. https://t.co/ALp9VLkTpt— Michael Saylor⚡️ (@saylor) March 27, 2023
As previously announced, MicroStrategy’s subsidiary MacroStrategy received a $205 million term loan from Silvergate Bank under its Silvergate Exchange Network Leverage program in March 2022. The loan was collateralized by certain Bitcoin owned by MacroStrategy and had a scheduled maturity date of March 23, 2025.
Under the terms of the credit agreement, MacroStrategy was required to maintain a loan to collateral value ratio of less than 50%. On March 24, 2023, MacroStrategy and Silvergate entered into a prepayment, waiver and payoff to credit and security agreement, with MacroStrategy voluntarily prepaying Silvergate around $161 million in full repayment.
“Upon Silvergate’s receipt of the payoff amount, the credit agreement was terminated, and Silvergate released its security interest in all of MacroStrategy’s assets collateralizing the loan, including the Bitcoin that was serving as collateral,” the filing reads.
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In the filing, MicroStrategy also mentioned that the company entered into an agreement with two companies — Cowen and Company and BTIG — to sell its aggregated class A common stock worth $500,000,000. According to the latest updates, MicroStrategy issued and sold an aggregate of 1,348,855 shares under the sales agreement for aggregate net proceeds to MicroStrategy of roughly $339 million.
The latest Bitcoin acquisition by MicroStrategy is apparently the first such transaction so far in 2023. The previous purchase took place in late December 2023, with MicroStrategy buying 2,395 BTC at an average price of $17,181 for a total of $42.8 million between Nov. 1 and Dec. 21.
MicroStrategy did not immediately respond to Cointelegraph’s request for comment. This article will be updated with new information as it becomes available.
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