Published: 05.04.2022
Article reading time:
2 minutes.
Software developer MicroStrategy bought 4,167 bitcoins with a loan from Silvergate Bank.
One of the major crypto investors, MicroStrategy has once again invested in bitcoin, acquiring $190 million worth of assets at a price of $45,714 per BTC. As a result, today the company owns a total of 129,218 bitcoins, worth almost $4 billion. The average acquisition cost is approximately $30,700 per BTC.
In March, MacroStrategy, a subsidiary of MicroStrategy, received a $205 million loan from Silvergate Ban(SEN), secured by the first cryptocurrency as collateral. The loan was backed by about $820 million in bitcoin, according to regulatory filings. The company has said it intends to use the funds to buy more bitcoin.
After that, MicroStrategy CEO Michael Saylor explained that the company had to take out a loan secured by BTC, as financial markets are not yet ready to invest in bonds backed by bitcoin.
“I would like to see a day when people sell bitcoin-backed bonds as mortgage-backed securities. The market is not ready for this right now. The next good idea was an urgent loan at a large bank,” said the head of MicroStrategy.
The loan will give the company an opportunity to solidify its position as “a leading public company investor in bitcoin.”
“By using the loan, we effectively turned our bitcoin into a productive collateral that allows us to continue to act in accordance with our business strategy,” Saylor explained.
Not only the head of MicroStrategy realizes the value of investing in bitcoin for the future development of the company. At the end of March, Terraform Labs acquired the first cryptocurrency for $139 million as part of another purchase of bitcoins, and now the wallets of this company store $1.45 billion worth of bitcoins.
Source: Bits
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