Loan Against Bitcoin? MicroStrategy Subsidiary Borrows $205M Against Bitcoin From Silvergate Bank

March 29, 2022 2:31 PM | 1 min read |

Silvergate Capital Corp's SI Silvergate Bank issued a $205 million term loan under its Silvergate Exchange Network (SEN) Leverage program to MicroStrategy Inc's MSTR subsidiary, MacroStrategy LLC.
MacroStrategy collateralized the loan with its Bitcoin holdings.
The interest-only term loan to the MacroStrategy subsidiary matured in March 2025.
MicroStrategy owned about $2.5 billion in Bitcoin at the end of December.
SEN had $570.5 million in commitments as of December.
MicroStrategy Chair and CEO Michael Saylor said, "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."
Price Action: SI shares traded higher by 6.03% at $160.97 on the last check Tuesday.

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