MicroStrategy Acquires 6.5K BTC; Repays Silvergate Loan
Recently, the Bitcoin landscape has seen some big moves that have left investors and industry observers buzzing. One of the most prominent figures in the space is Michael Saylor, the CEO of the business intelligence firm MicroStrategy.
Today, MicroStrategy announced that it has paid back its loan to Silvergate Bank and purchased an additional 6,500 BTC, further solidifying its position as one of the largest corporate holders of Bitcoin.
This brings MicroStrategy’s total Bitcoin holdings to an impressive 138,955 BTC, purchased for $4.1 billion for an average price of $29,817 per coin.
MicroStrategy Repays $205 Million Loan 22% Lower than Original Amount
Furthermore, MicroStrategy has taken advantage of the recent cryptocurrency market improvement by buying more BTC. Michael Saylor, the firm’s founder, tweeted that the company has paid back its $205 million loan to Silvergate.
In a filing with the United States Securities and Exchange Commission, Saylor highlighted that the company had repaid the Silvergate loan at 22% lower than the original amount. Earlier in March, Silvergate, a crypto-focused lender, announced that it was terminating operations and liquidating its assets due to the financial difficulties caused by the current crypto winter.
The bank expressed that it aims for an “orderly wind down” of the bank and a voluntary liquidation, with full repayment of all customer deposits.
MicroStrategy Makes History with $150 Million Bitcoin Acquisition
Besides paying its loan, MicroStrategy procured a substantial sum of Bitcoin, buying 6,455 for $150 million, or an average cost of $23,238 per coin. Saylor made this revelation via Twitter.
Saylor also confirmed that this had increased their total Bitcoin holdings to 138,955, for a total of $4.1 billion at an average price of $29,817 for each coin. This latest purchase marks a significant milestone for the institutional adoption of Bitcoin, as the company’s holdings now account for a substantial portion of its treasury.
Nevertheless, the company plans to continue its Bitcoin acquisition as part of its treasury strategy and is also paying out some of its holdings as rewards to its employees. The timing of this acquisition could not have been better.
With more institutional investors acquiring more BTC, the leading digital asset’s bull run is just starting. MicroStrategy’s commitment to Bitcoin shows that the company recognizes the long-term potential of the crypto asset and is willing to invest in it for the long haul.
It will be interesting to see how this investment pans out for them.
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