MicroStrategy, a prominent business intelligence company, has announced that it has fully repaid a loan of $205 million to Silvergate Bank. In a statement released on Monday, the company also revealed that it had purchased an additional 6,455 Bitcoins.
Michael Saylor, co-founder, and former CEO of MicroStrategy, announced via Twitter on March 27 that the company has repaid its $205 million loan to Silvergate. Saylor emphasized that MicroStrategy repaid the Silvergate loan at a 22% discount, citing an 8-K filing with the United States Securities and Exchange Commission.
MicroStrategy adds 6,455 BTC
MicroStrategy has been one of the most active corporate buyers of Bitcoin over the past year, with its CEO Michael Saylor becoming a vocal advocate for the cryptocurrency. The company made its first Bitcoin purchase in August 2020 and has since accumulated over 138,955 Bitcoins, worth around $5 billion at current prices.
MicroStrategy’s latest Bitcoin purchase was made at an average price of $27,797 per Bitcoin. The purchase suggests the company is still bullish on the cryptocurrency’s long-term prospects despite recent price volatility. In a tweet, MicroStrategy’s former CEO Michael Saylor said:
According to the former CEO, the company has also amassed a sizeable Bitcoin hoard, purchasing 6,455 BTC for $150 million, or an average price of $23,238 per coin as of March 23. Saylor reported that the acquisition increased MicroStrategy’s total Bitcoin holdings to 138,955 BTC, purchased for $4.1 billion at an average price of $29,817 per coin.
The crypto industry fills financial gaps as traditional banks collapse
In its infancy, crypto fervor was fueled by the promise of removing the rigged banking system from people’s fundamental need to exchange goods and funds. In some capacity, it still is. However, as digital assets become increasingly intertwined with the larger financial market, this tension gradually dissipates.
The recent wave of partial bailouts of failed institutions such as Silvergate Bank, Signature Bank, and Silicon Valley Bank (SVB) has not caused the cryptocurrency community to be alarmed.
Technically, both SVB and Signature were bailed out, but economists are emphasizing the significant difference between the current solution and the actions of the U.S. government during the 2008 financial crisis.
Even before the failures of Signature, SVB, and Silvergate, only a few banks were willing to bank crypto companies. It is impossible for a cryptocurrency company to diversify its assets across multiple institutions, as there are no more than 20 banks that will accept it.
MicroStrategy’s BTC advantage to the crypto industry
As Bitcoin continues its upward trajectory, many industry experts are looking at the role that MicroStrategy, a leading business intelligence firm, is playing in the crypto industry. The purchase move has not only helped to boost MicroStrategy’s own bottom line, but it has also provided a significant vote of confidence for Bitcoin, helping to drive up its value and visibility in the mainstream.
As Bitcoin heads for what many experts are predicting will be a major bull run, the role that MicroStrategy is playing in the crypto industry is more important than ever. With its large Bitcoin holdings, cutting-edge software tools, and deep industry expertise, MicroStrategy is poised to be a major player in the crypto space for years to come
