MicroStrategy, a business intelligence company and major Bitcoin Investors, are acquiring more BTC amid the recent cryptocurrency market recovery.
MicroStrategy co-founder and former CEO Michael Saylor announced on Twitter on March 27 that the company had repaid its $205 million loan to Silvergate.
Saylor cited a Form 8-K filed with the U.S. Securities and Exchange Commission highlighting that MicroStrategy repaid the Silvergate loan at a 22 percent discount. The former CEO said the company has also acquired a significant amount of bitcoin, buying 6,455 bitcoins for $150 million at an average price of $23,238 per bitcoin as of March 23. According to the filing, MicroStrategy acquired the latest batch of bitcoins between February 16, 2023 and March 23, 2023.
With the acquisition, Saylor said, MicroStrategy has increased its total bitcoin holdings to 138,955 BTC, purchased for $4.1 billion, or an average of $29,817 per bitcoin. As previously announced, MacroStrategy, a subsidiary of MicroStrategy, secured a $205 million term loan from Silvergate Bank in March 2022 under its Silvergate Exchange Network Leverage Program. The loan is secured by certain Bitcoins owned by MacroStrategy and has a scheduled maturity date of March 23, 2025.
Under the terms of the credit agreement, MacroStrategy is required to maintain the loan-to-collateral value ratio below 50%. On March 24, 2023, MacroStrategy and Silvergate entered into an Advance Payment, Waiver and Repayment Credit and Guarantee Agreement whereby MacroStrategy voluntarily prepaid Silvergate in full repayment of approximately $161 million. "After Silvergate received the repayment amount, the credit agreement terminated and Silvergate released its security interest in all of MacroStrategy's assets as collateral for the loan, including the bitcoin used as collateral," the filing reads.
In the filing, MicroStrategy also mentioned that the company entered into an agreement with two companies Cowen and Company and BTIG to sell its Class A common stock with a combined value of $500 million. According to the latest update, MicroStrategy issued and sold a total of 1,348,855 shares pursuant to the sale agreement, for a total net proceeds of approximately $339 million to MicroStrategy.
MicroStrategy’s latest bitcoin acquisition is apparently the first of its kind so far in 2023. Last purchased in late December 2023, MicroStrategy purchased 2,395 BTC at an average price of $17,181 for a total of $42.8 million between November 1 and December 21. MicroStrategy did not immediately respond to Cointelegraph's request for comment. This article will be updated as new information becomes available.
