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| Microstrategy Acquires 6,455 More Bitcoins and Repays Silvergate Loan in Full |
Microstrategy, a Nasdaq-listed software company, has acquired 6,455 more bitcoins for approximately $150 million at an average price of $23,238 per coin. This purchase brings Microstrategy's total bitcoin holdings to 138,955, acquired at an average cost of $29,817 per coin. CEO Michael Saylor confirmed the purchase via Twitter, and the company disclosed the acquisition in a filing with the U.S. Securities and Exchange Commission. The bitcoin was purchased between February 16 and March 23.
In addition to its bitcoin purchase, Microstrategy also announced the full repayment of its loan from Silvergate Bank. The company's wholly owned subsidiary, Macrostrategy, entered into a Credit and Security Agreement with Silvergate in March 2020 for a $205 million loan, which was collateralized by bitcoin owned by Macrostrategy and a cash reserve account. After the bank's announcement of voluntary liquidation earlier this month, Microstrategy prepaid approximately $161 million to pay off the loan and all other obligations under the agreement.
Microstrategy's latest bitcoin purchase and repayment of its loan from Silvergate Bank demonstrate the company's continued commitment to investing in cryptocurrency. The company has become one of the largest institutional holders of bitcoin, and its CEO Michael Saylor has been a vocal advocate for the cryptocurrency. Microstrategy's bitcoin investments have proved lucrative so far, with the company reporting a $1.1 billion profit from its bitcoin holdings in February.
Overall, Microstrategy's strategic investments in bitcoin and the recent repayment of its loan demonstrate the company's confidence in cryptocurrency as a long-term store of value and investment opportunity. As more institutional investors follow in Microstrategy's footsteps, it remains to be seen how this will impact the broader cryptocurrency market.
