MicroStrategy Acquires Additional 6,455 BTC After Repaying Silvergate Loan

MicroStrategy, a business intelligence company has continued to maintain its strong belief in Bitcoin (BTC), the leading cryptocurrency. The largest corporate holder has once again added to its Bitcoin stash as it acquired an additional $150 million worth of BTC to its holdings.

Notably, the recent addition by the largest Bitcoin investor now brings its total holdings to about 138,555 BTC worth about $4.14 billion. These acquisitions were done between February 15 and March 23. MicroStrategy’s 6,455 addition signals the return of institutional investors to the digital asset.

As noted in a form 8-K filing with the Securities and Exchange Commission (SEC), the business intelligence firm also erased its loan commitment to failed crypto-friendly bank Sillvergate. According to the filing, MicroStrategy repaid $161 million at a 22% discount to clear its obligation to a $205 million BTC-collateralized loan.

Subsequently, after the voluntary repayment, the software maker now has access to its 34,619 BTC held as collateral for the loan which was initially due in March 2025. To fund this purchase, Microstrategy sold about $500 million of its equity to Cowen & Co. and BTIG, both of which are investment banks that focus on crypto-related stocks.

Recall that Microstrategy joined a list of crypto firms to sever ties with Silvergate after these firms feared that the crypto-friendly bank’s crisis would eventually result in bankruptcy.

Microstrategy Remains Bullish on Bitcoin

At the end of 2022, the American business software vendor acquired a massive amount of 2,395 BTC for $43 million to its portfolio through its subsidiary Macrostrategy. The technology company, which has no immediate plan to sell off its BTC, has seen the business to be long-term oriented.

Despite having a paper loss of over $1 billion on its Bitcoin holding in 2022, the well-known intelligence firm announced last month that it had no intentions to stop trading the virtual currency. In the same vein, Michael Saylor, the co-founder and executive president of MicroStrategy noted that “the only real safe haven for an institutional investor is Bitcoin as it is the only universally acknowledged digital commodity”.