MacroStrategy, Closes $205 Million Bitcoin-Collateralized Loan with Silvergate Bank to Purchase More Bitcoin

Bitcoin evangelist, Michael Saylor, CEO of Microstrategy, announced via Twitter that the company's subsidiary, MacroStrategy, has taken a loan from Silvergate bank, a subsidiary of Silvergate Capital Corporation, of $205 million to acquire Bitcoin. 

The loan was given through the Silvergate Exchange Network (SEN) Leverage program, which issues U.S. dollar loans using Bitcoin as collateral. According to a regulatory filing, the loan was collateralized with about $820 million worth of Bitcoin. 

This will allow Macrostrategy, which is the largest independent publicly traded analytics and business intelligence company, to purchase Bitcoin or pay interest and fees related to the loan or for MacroStrategy’s or MicroStrategy’s general corporate needs.

“The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin,” Saylor said in the press release. “Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy.”

Silvergate, the leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry, launched its SEN leverage program in SEN Leverage in 2020, and as of December 31 of last year has grown approximately $570 million in commitments. This alludes to the increased need to access capital in the form of digital currency. 

“We’re thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers,” said Alan Lane, Chief Executive Officer of Silvergate. “Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.”

Microstrategy, a Virginia-based company, has become known for their embrace of Bitcoin. As of February 1 MicroStrategy held about 125,051 Bitcoins. Bitcoin is currently trading about $47,800, valuing the trove at $5.97 billion. 

Author: Tyler Irvin

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