MicroStrategy Buys Over 6,000 Bitcoins, Repays Silvergate Loan: Here Is What It Means

MicroStrategy paid a sum of $150 million for its latest BTC acquisition.

MicroStrategy bought a total of 6,455 Bitcoins for around $150 million on Monday. The Nasdaq-listed enterprise purchased the tokens at an average rate of $23,238 per coin. After the latest purchase, the organisation holds 138,955 Bitocins at present. However, these were acquired for $29,817 per coin on an average. MicroStrategy is the world's leading enterprise analytics platform and the largest public company holder of Bitcoin. The organisation also replayed its loans to the failed SIlvergate bank.

MicroStrategy CEO Michael Saylor announced the acquisition on Twitter. He said, "MicroStrategy acquired an additional 6,455 bitcoins for $150M at an average of $23,238 per Bitcoin and held 138,955 BTC acquired for ~$4.14B at an average of $29,817 per Bitcoin."

In an official filing with the US Securities and Exchange Commission (SEC), the platform submitted all the required details about the newly acquired Bitcoins from February 16 to March 23 this year.

Meanwhile, the organisation also fully repaid its loan amount from the troubled Silvergate Bank.

Official filing documents also reveal that the Nasdaq-listed company has also paid off its loan taken from the collapse of Silvergate Bank earlier. MicroStrategy's entirely owned subsidiary had entered a  Credit and Security Agreement with Silvergate for a $205 million loan on March 23 last year.

The company said, as quoted by Bitcoin.com, “The loan was collateralised by certain bitcoin owned by MacroStrategy and a $5.0 million cash reserve account held by MacroStrategy at Silvergate.

Both organisations came together on March 24 to repay the loan under the “Prepayment, Waiver and Payoff to Credit and Security Agreement," reported Bitcoin.com.

"MicroStrategy voluntarily prepaid Silvergate approximately $161 million (the ‘Payoff Amount’), in full repayment, satisfaction, and discharge of the Loan and all other obligations under the Credit Agreement," said the company in SEC filing, as cited by Bitcoin.com

The company further clarified that the Credit Agreement was terminated after the receipt of the payoff amount was issued.

Silvergate Bank was one of the multiple top banks that collapsed earlier this month. On March 8, the crypto-friendly bank announced voluntary liquidation.

It had also announced the termination of the crypto payments network the Silvergate Exchange Network before liquidation.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.