MicroStrategy acquires Bitcoin worth $150M, makes repayment on Silvergate loan MicroStrategy acquires Bitcoin worth $150M, makes repayment on Silvergate loan
MicroStrategy said it now holds 138,955 BTC acquired for approximately $4.14 billion at an average price of $29,817.
2 min read
Updated: Mar. 27, 2023 at 2:55 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
MicroStrategy said it spent roughly $150 million to acquire 6,455 Bitcoin (BTC) between February 16 and March 23, according to a March 27 SEC filing.
The pro-Bitcoin firm added that it prepaid the principal of $161 million on its loan from failed crypto-friendly bank Silvergate Bank.
According to the filing, the 34,619 BTC held as collateral for the loan has been released.
MicroStrategy had taken a $205 million loan from Silvergate in March 2022. The loan was collateralized with the firm’s BTC holdings and $5.0 million cash reserve held at the failed bank.
As of March 23, the firm said it held 138,955 BTC acquired for approximately $4.14 billion at an average price of $29,817.
With BTC trading around $27,000, MicroStrategy has an unrealized loss of over $340 million as its holdings are valued at $3.8 billion.
Saylor remains bullish on Bitcoin
The companyโs founder Michael Saylor remains bullish on the flagship digital asset.
A March 25 tweet from Saylor showed that Bitcoin had outperformed other traditional assets like gold, silver, bonds, Nasdaq, and S$P 500 since his company adopted the BTC strategy.
In a separate tweet, Saylor noted that Bitcoin replaces the broken banking system with something better. This was in reference to the recent banking crisis that has claimed several crypto-friendly banks like Silicon Valley Bank and Signature Bank.
Meanwhile, MicroStrategy said it raised $339.4 million between January 1 and March 23 through the sales agreement for its class A common stock with sales agents โ Cowen and Company, LLC and BTIG, LLC.
The news had no impact on BTCโs price performance. The flagship digital asset is down 0.44% on the 1-hour candle to $27,745, according to CryptoSlateโs data.
MicroStrategy shares are up 2.72% premarket. The stock has increased 81% on the year-to-date metric.
(Updated throughout to include more details)
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
MicroStrategy
MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software.
Silvergate
Silvergate is a Federal Reserve member bank and the leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry, based in La Jolla, California.
Michael Saylor is the Executive Chairman, founder, and principal shareholder of MicroStrategy.