Microstrategy has bought 6,455 bitcoins for about $150 million at a median value of $23,238 per coin. With its newest buy, Microstrategy now holds 138,955 bitcoins acquired at a median of $29,817 per coin. Furthermore, the corporate additionally paid off its mortgage from troubled Silvergate Financial institution in full.
Microstrategy Buys Extra Bitcoin
Nasdaq-listed Microstrategy Inc. (Nasdaq: MSTR) introduced Monday that it has acquired 6,455 extra bitcoins. CEO Michael Saylor tweeted:
Microstrategy repaid its $205M Silvergate mortgage at a 22% low cost. As of three/23/23, MSTR acquired a further ~6,455 bitcoins for ~$150M at a median of ~$23,238 per bitcoin & held ~138,955 BTC acquired for ~$4.14B at a median of ~$29,817 per bitcoin.
In a filing with the U.S. Securities and Trade Fee (SEC) on Monday, the corporate detailed that the 6,455 bitcoins have been acquired between Feb. 16 and March 23.
Compensation of Silvergate Mortgage
The submitting additional explains that the Nasdaq-listed software program firm voluntarily pay as you go its mortgage from the failed Silvergate Financial institution. Microstrategy’s wholly owned subsidiary, Macrostrategy, entered right into a Credit score and Safety Settlement with Silvergate on March 23 final yr for a $205 million mortgage. “The mortgage was collateralized by sure bitcoin owned by Macrostrategy and a $5.0 million money reserve account held by Macrostrategy at Silvergate,” the corporate famous.
Silvergate Financial institution was among the many banks that fell into hassle this month. The crypto-friendly financial institution introduced voluntary liquidation on March 8. Just a few days earlier than its liquidation announcement, the financial institution terminated its crypto funds community, the Silvergate Trade Community (SEN).
The 2 corporations entered right into a “Prepayment, Waiver and Payoff to Credit score and Safety Settlement” On March 24 for Microstrategy to repay the mortgage. The SEC submitting particulars:
Macrostrategy voluntarily pay as you go Silvergate roughly $161.0 million (the ‘Payoff Quantity’), in full reimbursement, satisfaction, and discharge of the Mortgage and all different obligations beneath the Credit score Settlement.
“Upon Silvergate’s receipt of the payoff quantity, the Credit score Settlement was terminated, and Silvergate launched its safety curiosity in all of Macrostrategy’s belongings collateralizing the mortgage, together with the bitcoin that was serving as collateral,” Microstrategy clarified.
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