Nasdaq-Listed Microstrategy Obtains $205 Million Bitcoin-Backed Loan to Buy More BTC – Microstrategy, a Nasdaq-listed pro-bitcoin software company, revealed on Tuesday that one of its subsidiaries has secured a bitcoin-backed loan to buy more BTC.
Michael Saylor, CEO of Microstrategy, tweeted on Tuesday:
“To purchase bitcoin, Microstrategy, a subsidiary of Microstrategy, closed a $205 million bitcoin-collateralized loan with Silvergate Bank.”
Microstrategy reported that Silvergate Bank “has given a $205 million term loan to Macrostrategy LLC under its Silvergate Exchange Network (SEN) Leverage program.”
According to the company, “the interest-only term loan is secured by specific bitcoin kept in Macrostrategy’s collateral account with a custodian mutually authorized by Silvergate and Macrostrategy.”
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Macrostrategy will utilize the loan proceeds to buy bitcoins, pay fees, interest, and expenditures linked to the loan transaction, or for its parent company’s general corporate purposes, according to the terms of the agreement.
SEN Leverage, which debuted in 2020, offers institutional-grade capital via U.S. dollar loans backed by bitcoin.
“The SEN Leverage loan allows us to strengthen our position as the foremost public business bitcoin investor,” Saylor explained, adding:
We’ve effectively transformed our bitcoin into productive collateral by using the funds from the loan, allowing us to execute on our business strategy even more efficiently.
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Nasdaq-Listed Microstrategy Obtains $205 Million Bitcoin-Backed Loan to Buy More BTC – Microstrategy’s treasury has already received 125,051 BTC. “Our strategy with bitcoin has been to buy and keep,” the company’s chief financial officer revealed, to the extent we have excess cash flows or find other methods to raise money, we continue to put it into bitcoin.”