Enterprise software developer MicroStrategy has paid off a $205 million loan to collapsed crypto bank Silvergate Bank.
The Tyson’s Corner, Virginia, company voluntarily paid off a $205 million loan with a 22% discount after the crypto bank voluntarily filed for liquidation earlier this year.
MicroStrategy Chairman Confirms 22% Discount on Silvergate Loan
According to a filing with the U.S. Securities and Exchange Commission, the loan was collateralized by Bitcoin held by MicroStrategy’s subsidiary MacroStrategy and $1.5 million in cash the affiliate firm held at Silvergate Bank.
After the 22% discount, the firm repaid $161 million before the loan’s term expires in March 2025. The filing does not disclose what would happen to the 34,619 Bitcoin used as collateral under the Loan agreement.
MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin. https://t.co/ALp9VLkTpt
— Michael Saylor
(@saylor) March 27, 2023
(@saylor) In addition to the loan repayment, the 8-K filing disclosed that MicroStrategy added 6,455 Bitcoin to its balance sheet, which takes its corporate Bitcoin holdings to 138,995.
MicroStrategy is the largest corporate holder of Bitcoin, having previously acquired 2,395 Bitcoin between Nov. 2, 2022, and Dec. 21, 2022.
The firm also plans to harness Bitcoin’s micropayment Lightning Network through enterprise software initiatives.
A District of Columbia judge recently denied a motion to dismiss tax evasion charges against MicroStrategy’s Executive Chairman, Michael Saylor. The D.C. Office of the Attorney General
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Author: David Thomas
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