Subsidiary of MicroStrategy Closes $205 Million Bitcoin-Collateralized Loan With Silvergate Bank to Buy Bitcoin
- MacroStrategy(a subsidiary of MicroStrategy) closes a $205 million collateral loan with Silvergate Bank.
- Both the companies see this as an opportunity for individual growth in respective industries.
The subsidiary of MicroStrategy, MacroStrategy LLC has closed a $205 million bitcoin collateralized loan. They purchased it via Silvergate Exchange Network (SEN) Leverage program of the Silvergate Bank. Both the firms have shared this news via a press release.
The allotment of the loan will include three steps – buying the bitcoin, paying fees and the interest related to the loan or other purposes as decided by MicroStrategy and its subsidiary. The collateral account is there to supervise the interest-only term loan.
The Chairman and Chief Executive Officer of MicroStrategy, Michael Saylor said that this opportunity will help them progress as the leading public company investor in bitcoin as they have utilized the capital to convert their bitcoin into a productive collateral.
The Chief Executive Officer of Silvergate, Alan Lane also said that they are enthusiastic of adding MicroStrategy in their list of borrowers. He said, “Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.”