MicroStrategy has made yet another major announcement pertaining to increasing its holding of Bitcoins even more. The firm announced on Monday that it has acquired 6,455 more Bitcoin.
Michael J. Saylor Posted the News
It was on Monday when the CEO of MicroStrategy took to Twitter to share the news of acquiring more BTC. He confirmed that their company has acquired even more Bitcoin.
In addition to acquiring Bitcoin, Saylor also made an announcement about the repayment of their loan to the Silvergate Bank. He revealed that they had a $205 million loan they had to pay to the particular bank.
He confirmed that they had the option of paying back the loan with a huge discount so they went for it. He revealed that the refund they were given was 22%, so they went ahead and paid the loan.
MicroStrategy Spent $150 Million More on BTC
Saylor announced that this time, they invested a total of $150 million which let them acquire a total of 6,455 Bitcoin. Given the number of tokens purchased, it means that the company bought each BTC at an average price of $23,238.
With the recent acquisition, the company’s overall accumulation has risen for the BTC tokens. Prior to the acquisition of the 6,455 tokens, the company’s overall holding was at 132,500, but it has risen to 138,955 BTC tokens.
The total value of the tokens held by MicroStrategy stands at $4.14 billion, suggesting that on average, the company acquired each BTC at $29,817.
MicroStrategy’s Payback of the Loan to Silvergate
It was back on March 23, 2022, when MicroStrategy had formed a Credit and Security Agreement. The agreement had been signed with the Silvergate Bank and it was for a whopping $205 million loan.
As part of the agreement, MicroStrategy would go on to put Bitcoin as collateral for the $205 million loan. On top of that, the business intelligence company also kept a cash reserve at the Silvergate Bank that was for $5 million.
However, the agreement couldn’t stay put between both entities as the Silvergate Bank announced its liquidation in the mid of March this year.
With the company failing to keep up with the agreement, it had to finalize a deal with MicroStrategy. The Silvergate Bank teams offered a 22% discount, which the business intelligence company gladly accepted.
According to the reports, MicroStrategy has settled the debt with the Silvergate Bank paying $159.9 million saving the company over $45.1 million.
It is speculated that the company wasted no time and used the saved-up amount from the deal to purchase more BTC than they had initially planned.