MacroStrategy, one of the largest publicly traded analytics and business intelligence companies, has been issued a Bitcoin collateralized loan with $205 million to buy more BTC. The loan has been issued by Silvergate bank under its Silvergate Exchange Network (SEN) Leverage program.
$205 Million Bitcoin Collateralized Loan With Silvergate Bank
As per the official blog post, the loan issued by Silvergate is an interest term loan and is secured by a certain amount of Bitcoin held in a collateral account with an anonymous custodian, mutually authorized by MacroStrategy and Silvergate.
The terms of the agreement further state that the loan issued will be used by MacroStrategy to purchase additional bitcoins, pay fees and expenses related to the loan transaction.
“The SEN Leverage loan allows us to further our position as the leading public company investor in bitcoin,” said Michael Saylor, Chairman and Chief Executive Officer of MicroStrategy. “Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy.”
Presently, MacroStrategy holds nearly 125,051 BTC at a market value of USD 6 billion. The firm had bought its first Bitcoin back in August 2020.
Founded in 1989, MicroStrategy Incorporated is a reputed company offering services in Business intelligence, mobile software, and cloud-based services. The company has been rated as the best in enterprise analytics and has clients across the world. Per the official blog post, MicroStrategy intends to purchase Bitcoin as it views the asset as a “dependable store of value supported by a robust, public, open-source architecture untethered to sovereign monetary policy.”