Nasdaq-listed Microstrategy has obtained a $205 million bitcoin-collateralized mortgage from Silvergate Financial institution by means of a subsidiary to purchase extra bitcoin. “The interest-only time period mortgage is secured by sure bitcoin held in Macrostrategy’s collateral account.”
Firm to Use $205M Bitcoin-Backed Mortgage to Buy Bitcoin
Microstrategy CEO Michael Saylor tweeted Tuesday:
Macrostrategy, a subsidiary of Microstrategy, has closed a $205 million bitcoin-collateralized mortgage with Silvergate Financial institution to buy bitcoin.
Silvergate Financial institution “has issued a $205 million time period mortgage beneath its Silvergate Alternate Community (SEN) Leverage program to Macrostrategy LLC,” Microstrategy detailed.
“The interest-only time period mortgage is secured by sure bitcoin held in Macrostrategy’s collateral account with a custodian mutually approved by Silvergate and Macrostrategy,” the corporate famous.
Underneath the phrases of the settlement, Macrostrategy will use the mortgage proceeds to buy bitcoins, pay charges, curiosity, and bills associated to the mortgage transaction, or for its or its mum or dad firm’s common company functions.
SEN Leverage, launched in 2020, offers institutional-grade entry to capital by means of U.S. greenback loans collateralized by bitcoin.
“The SEN Leverage mortgage offers us a possibility to additional our place because the main public firm investor in bitcoin,” Saylor commented, elaborating:
Utilizing the capital from the mortgage, we’ve successfully turned our bitcoin into productive collateral, which permits us to additional execute in opposition to our enterprise technique.
Microstrategy has already acquired 125,051 BTC for its treasury. “Our technique with bitcoin has been to purchase and maintain, so to the extent we’ve extra money flows or we discover different methods to lift cash, we proceed to place it into bitcoin,” the corporate’s chief monetary officer defined.
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