Microstrategy purchased approximately 6,455 bitcoins for approximately $150 million at an average price of $23,238 per coin. With this purchase, Microstrategy now has 138,955 bitcoins acquired at an average price of $29,817 per coin. In addition, the company also repaid the troubled Silvergate Bank loan in full.
MicroStrategy bought more bitcoins
Nasdaq-listed MicroStrategy Inc (Nasdaq: MSTR) announced Monday that it acquired another 6,455 bitcoins, with CEO Michael Saylor tweeting:
MicroStrategy has repaid $205 million of Silvergate loans at a 22% discount; as of 3/23/23, MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average ~$23,238 per bitcoin&and holds ~138,955BTCat an acquired for ~$414 million at an average of ~$29,817.
In adocumentfiled with the U.S. Securities and Exchange Commission (SEC) on Monday, it detailed that 6,455 bitcoins were acquired between February 16 and March 23.
repayment of the Silvergate loan
Additionally, the filing explains that the Nasdaq-listed software company voluntarily prepaid the loan from the failed Silvergate Bank; Macrostrategy, a wholly owned subsidiary of Microstrategy, repaid the Silvergate on March 23 of last year and entered into a credit and security agreement for a $205 million loan.” The loan was secured by certain bitcoins owned by Macrostrategy and a $5 million cash reserve account held by Macrostrategy at Silvergate,” the company noted.
Silvergate Bank is one of the banks in trouble this month. The crypto-friendly bank announced its voluntary liquidation on March 8. A few days before the liquidation announcement, the bank terminated its crypto payment network, the Silvergate Exchange Network (SEN).
The two companies signed a “Prepayment, Waiver and Payoff to Credit and Security Agreement” on March 24 for Microstrategy to pay off the loan.Here are the details of the SEC filing:
MacroStrategy voluntarily prepaid Silvergate approximately $161.0 million (the “Payoff Amount”) as full repayment, satisfaction, and release of all other obligations under the Loan and Credit Agreement.
“Upon Silvergate’s receipt of the Payoff Amount, the Credit Agreement terminated and Silvergate released its security interest in all of Macrostrategy’s assets securing the Loan, including the Bitcoin that was collateral.” Microstrategy clarified.
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