MicroStrategy Holds Over 138,000 Bitcoins With $4.14 Billion Purchase Value

Key Points:

• MacroStrategy, a subsidiary of MicroStrategy, has fully repaid its $205 million loan to Silvergate Bank with bitcoin serving as collateral.
• The loan had a floating interest rate of 8.27%, and MacroStrategy was required to maintain a loan-to-collateral value ratio of less than 50%.
• MicroStrategy and its subsidiaries acquired approximately 6,455 bitcoins for $150 million, bringing their total holdings to 138,955 bitcoins acquired at an average price of $29,817 per bitcoin.

MicroStrategy pays off $205 million Bitcoin-backed loan early and accumulates more, adding 6,455 Bitcoins to its stash in February-March 2023.

In a move that surprised many in the financial world, MicroStrategy subsidiary MacroStrategy has voluntarily prepaid its $205 million bitcoin-backed loan from Silvergate Bank.

The loan was collateralized by a cash reserve account and approximately 34,619 bitcoins, which MacroStrategy was required to maintain a loan-to-collateral value ratio of less than 50%. As of March 24, 2023, the floating interest rate on loan was 8.27%.

This repayment follows a recent announcement by MicroStrategy that it had acquired an additional 6,455 bitcoins for $150 million, bringing its total holdings to approximately 138,955 bitcoins with an average purchase price of $29,817 per bitcoin.

Despite the cryptocurrency market’s volatility, CEO Michael Saylor has been vocal about his company’s belief in bitcoin as a long-term store of value and inflation hedge.

With the loan repayment, MacroStrategy has freed up its bitcoin collateral, which could potentially be used for further purchases or other purposes.

This move is yet another example of MicroStrategy’s ongoing commitment to bitcoin and its potential as a strategic asset. It will be interesting to see how the market reacts to this news and MicroStrategy’s next moves in cryptocurrency.

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