2 months ago 1 min read

MicroStrategy Maintains Over 138,000 Bitcoins Worth $4.14 Billion In Purchases

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In February and March of 2023, MicroStrategy adds 6,455 Bitcoins to its collection and repays a $205 million loan backed by bitcoin early.

Many in the financial industry were surprised by the voluntary prepayment of MacroStrategy's $205 million loan from Silvergate Bank, which was backed by bitcoin, by the MicroStrategy subsidiary.

A cash reserve account and about 34,619 bitcoins served as collateral for the loan, and MacroStrategy was required to keep the loan-to-collateral value ratio under 50%. The loan's adjustable interest rate was 8.27% as of March 24, 2023.

This payment comes on the heels of MicroStrategy's recent statement that it had purchased 6,455 more bitcoins for $150 million, bringing its total holdings to about 138,955 at an average purchase price of $29,817 each.

Despite the turbulence in the cryptocurrency market, CEO Michael Saylor has been outspoken about his company's support for bitcoin as a long-term inflation hedge and store of value.

MacroStrategy has released its bitcoin collateral as a result of the loan repayment, which could be utilized for future acquisitions or other uses.

This action demonstrates MicroStrategy's continued dedication to bitcoin and its potential as a strategic asset yet again. The market's response to this revelation and MicroStrategy's upcoming cryptocurrency maneuvers will be watched with attention.

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