MicroStrategy Pays Off Silvergate Loan, Buys More Bitcoin
The company borrowed $205 million from Silvergate Bank last March.
Mar 27, 2023 at 12:25 p.m. UTCMicroStrategy (MSTR), a software company that was co-founded by crypto advocate Michael Saylor and that holds a large amount of bitcoin (BTC), prepaid the remaining principal on its $205 million loan from failed, crypto-focused Silvergate Bank, according to a filing with the U.S. Securities and Exchange Commission on Friday.
In addition, MicroStrategy said it purchased another 6,455 bitcoins for roughly $150 million (about $23,238 per coin) over the past five weeks.
The loan payoff was made last Friday and totaled $161 million. As part of the satisfaction of the loan, 34,619 bitcoins held as collateral were returned to MicroStrategy's custody. The company took out the loan last March.
The acquisition of another 6,455 bitcoins brings MicroStrategy's holdings up to 138,955 bitcoins purchased at an average price of $29,817 each and worth roughly $3.88 billion at the current bitcoin price of $27,900.
MicroStrategy also disclosed that it has raised $339.4 million this year through the sale of its shares and used the proceeds to pay back the loan from Silvergate.
Shares of MicroStrategy were up 0.9% premarket.
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