MultiversX Tracker is Live!

Microstrategy Repays Silvergate Loan As It Expands Bitcoin Holdings

Bitcoinist

Bitcoin News / Bitcoinist 59 Views

Amid the recent crypto market recovery, MicroStrategy, a business intelligence software company known in the crypto community for its accumulation of Bitcoin (BTC), has announced its first Bitcoin purchase of the year. 

Alongside its latest acquisition of Bitcoin, the software company also announced in a form 8-K filing with the United States Securities and Exchange Commission (SEC) that it has repaid its outstanding loan with the troubled US-based bank, Silvergate.

Microstrategy Resumes BTC Buying Spree After Loan Settlement

Microstrategy started its accumulation of Bitcoin in 2020 and ever since the company has been known for large purchases of Bitcoin

Though the company went on a three-month hiatus since its significant recorded losses in 2022, it has now resumed its BTC purchases, according to its latest announcement. 

Related Reading: US Government Holds More Bitcoin Than MicroStrategy, Tesla Combined

MicroStrategy co-founder and former CEO Michael Saylor disclosed in a Twitter post on March 27 that the company has acquired an additional 6,455 BTC worth approximately $150 million at an average price of $23,238. 

This latest purchase has now expanded the company’s Bitcoin holdings by nearly 10%, bringing its total Bitcoin holdings to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin. 

Notably, last year, amid the global market downtrend, Microstrategy initiated a $205 million loan with Silvergate which the company used to purchase a large amount of Bitcoin. 

Though the company recorded significant losses at the time, its losses have since shrunk given the BTC rebound since January. According to Micheal Saylor, the Silvergate loan was paid at a 22% discount.

The Ex CEO tweeted:

MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin  & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin.

Bitcoin Price Action Over The Past Week

Following its rapid appreciation in value since the beginning of the month due to the US banking crisis, Bitcoin has seen a notable retracement in the past 7 days down by nearly 3%. BTC has fallen from a high of $28,783 on March 22 to trade below $28,000 as of today.

This plummet comes after Federal Reserve Chairman Jerome Powell’s announced another increase in interest rates. Over the past week, the asset has seen a downtrend in its market capitalization and trading volume indicating a slowdown in its buying pressure

Related Reading: Bitcoin And Crypto Face These Key Dates In The Week Ahead

At the time of writing, Bitcoin currently has a 24-hour trading volume of $13.9 billion, a figure lower than the amount seen earlier this month of above $50 billion during its rally. 

Bitcoin price chart on TradingView (MicroStrategy)

Meanwhile, over the past 24 hours, Bitcoin is currently in a downtrend alongside the rest of the crypto market. The asset is down by nearly 4% at the time of writing with a trading price of $26,858.

Featured image from Unsplash, Chart from TradingView


Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.



Comments