thecoinrepublic.com
A subsidiary of MicroStrategy, Macrostrategy business intelligence company has taken out a loan of approx $205 mn which it needs to use for distinct purposes
Microstrategy announced the news yesterday on 29th march regarding taking out a loan of approx $205 million. The business intelligence company received the loan through the network of Silvergate Exchange, a famous collateralized crypto loan offering platform of San Diego based Silvergate Bank.
As the announcement stated that Macrostrategy LLC managed to get an interest-only loan using as collateral its existing holdings of BTC. For now, the collateralized bitcoin is held in the collateral account of a company with a custodian authorized by both MacroStrategy and Silvergate Capital.
The company has plans to purchase more bitcoins from the fund and apart from the BTC purchase it also plans to use the funds to pay interest, expenses and fees related to loan transactions. Other than that, the company also seeks to utilize the money for its settlement of general corporate costs or of its parent company.
CEO of Silvergate commenting on the deal said that adding MicroStrategy to their SEN leverage borrowers list is thrilling for them. Innovative approach of the company towards the treasury management is an example that is exceptional of how institutions can use their bitcoin for supporting and growing their business.
Microstrategy CEO and popular pro bitcoin investor Michael Saylor said that the SEN Leverage Loan would give them an opportunity to position the company in the position of a leading public company that would be an investor in bitcoin. Using the loan capital they have turned their bitcoin effectively into productive collateral that allows the firm to further execute even against their business strategy.
In the following tweet, Saylor maintaining his bullish view on bitcoin said that he would move the world if anyhow he had a lever, long enough and to place it on BTC.
The news comes after the announcement of Macrostrategy in June 2021, at the time Microstrategy said that it would transfer its bitcoin holdings that accounted for 92,079 BTC at the time into the LLC division registered in Virginia US. Microstrategy increased its BTC holding and went up to 124,392 bitcoins by last year. At the time, bitcoin was being traded around $47K.