MicroStrategy repaid its loan to Silvergate and bought $150 million worth of bitcoins ahead of schedule
MicroStrategy paid off a loan from bankrupt bank Silvergate ahead of schedule and bought $150 million worth of bitcoins
The company, founded by Michael Saylor, now has nearly 139,000 bitcoins on its balance sheet, which were purchased at a combined price of about $4.14 billion with an average purchase price of about $29,817
MicroStrategy paid off a loan to bankrupt bank Silvergate ahead of schedule and added 6,400 thousand bitcoins (about $150 million). That's according to a Form 8-K filed by the software company with the U.S. Securities and Exchange Commission (SEC).
MicroStrategy borrowed $205 million from Silvergate Bank in 2022, secured by 34,600 bitcoins and $5 million, with a maturity date of March 23, 2025. The company said in a statement that it repaid the loan early because of the bank's decision to liquidate.
To do so, it paid Silvergate $161 million and got back the bitcoins it had pledged. According to MicroStrategy founder Michael Saylor, the loan was repaid at a 22% discount.
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MicroStrategy also said it used proceeds from the sale of shares this year under agreements made back in 2022 to pay off its debt to Silvergate.
In addition, the notice states that MicroStrategy purchased 6,400 bitcoins between Feb. 16 and March 23 for about $150 million, during which time it bought bitcoins at an average price of $23,200.
As of March 23, 2023, MicroStrategy, along with its subsidiaries, owned approximately 138,955 bitcoins, which were purchased at a combined price of about $4.14 billion with an average purchase price of about $29,817.
As of December 27, the average price of bitcoins MicroStrategy purchased was about $30,397 per BTC.