Crypto: Microstrategy pays off $205 million Silvergate loan, buys $150 million worth of bitcoin: SEC filing

by | Mar 27, 2023 | Stock Market

Macrostrategy, which is a wholly-owned subsidiary of software firm Microstrategy, has paid off a $205 million loan to Silvergate Bank, according to a U.S. Securities and Exchange Commission filing created on March 24 and made accessible on Monday. The loan was voluntarily paid off with a 22% discount after the crypto bank filed for liquidation earlier this year, according to the filing. After the discount, the firm paid $161 million before the March 2025 expiration of the loan term. According to the filing, the loan was collateralized by bitcoin
held by MacroStrategy and $1.5 million in cash the firm held at Silvergate Bank.

Silvergate Bank was once seen as one of the most crypto-friendly banks in the U.S. before its collapse earlier this month. Silvergate provided a real-time payment network that allowed its clients to send money and convert fiat to crypto 24/7. The filing also highlights that between Feb. 16 and March 23, 2023, Microstrategy bought 6,455 bitcoin for approximately $150 million in cash, at an average price of $23,238 per token. As of March 23, the company held approximately 138,955 bitcoins, which is approximately $4.14 billion worth of bitcoin, according to the filing. Microstrategy’s founder and chairman Michael Saylor has long been bullish on bitcoin, calling it the least controversial of all the cryptocurrencies, and publicly challenging the token’s critics. Bitcoin, which rallied after Silvergate and crypto-friendly Signature Bank collapsed this month, is currently trading at $27,039, down 3% in the last 24 hours, according to CoinDesk. The price of bitcoin peaked in November 2021 at around $65,000. See: Bitcoin tumbles as CFTC sues Binance for allegedly violating commodity trading laws

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