MicroStrategy Says It Doesn’t Have Any Assets Custodied With Silvergate

The company did receive a $205 million loan from Silvergate in March 2022, but MicroStrategy said the loan terms wouldn’t change in case of insolvency.

AccessTimeIconMar 2, 2023 at 8:42 p.m. UTC
Updated May 9, 2023 at 4:09 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Business software company MicroStrategy (MSTR) said it has no assets custodied with Silvergate Capital (SI) and is in no other way financially linked to the bank other than a commitment to repay a loan in 2025, the company said on Thursday.

“There are market concerns regarding Silvergate’s financial condition,” MicroStrategy said in a tweet, referring to fears that the crypto–focused bank may not be able to continue as a “going concern” after it had to delay its 10-K filing. “Our bitcoin (BTC) collateral isn’t custodied with Silvergate and we have no other financial relationship with Silvergate.”

  • 'The Voice' Makes Its Way to the Metaverse
    12:43
    'The Voice' Makes Its Way to the Metaverse
  • Staking Has Been a Major Liquidity Sink for ETH: Coinbase Institutional
    00:53
    Staking Has Been a Major Liquidity Sink for ETH: Coinbase Institutional
  • Fantom Token Jumps; Dolce & Gabbana Sued for NFT Deliveries
    01:52
    Fantom Token Jumps; Dolce & Gabbana Sued for NFT Deliveries
  • What's the Key to Winning a Hackathon?
    00:32
    What's the Key to Winning a Hackathon?
  • The terms of a $205 million loan between MicroStrategy and Silvergate Bank, a subsidiary of Silvergate Capital, also won’t change in the face of the bank’s inability to publish its annual report in which it will report further losses.

    MacroStrategy, MicroStrategy’s subsidiary that handles its bitcoin purchases and holdings, received a $205 million loan from Silvergate Bank in March 2022 through its Silvergate Exchange Network (SEN) Leverage program. The loan is due in the first quarter of 2025 and that timing will not change, the company wrote in its tweet.

    “We have a loan from Silvergate not due until Q1 ‘25,” MicroStrategy said. “For anyone wondering, the loan wouldn’t accelerate because of Silvergate’s insolvency or bankruptcy.”

    Multiple crypto companies, including Coinbase, Paxos, Galaxy Digital and Kraken, have ended their relationships with the bank following its filing news on Wednesday.

    Shares of Silvergate were down 57% on Thursday.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Helene Braun

    Helene is a New York-based reporter covering Wall Street, the rise of the spot bitcoin ETFs and crypto exchanges. She is also the co-host of CoinDesk's Markets Daily show. Helene is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.