MicroStrategy Purchases Additional $150 Million Worth Of Bitcoin And Pays Off Its Loan From Silvergate
With over $4 billion worth of Bitcoin in its corporate reserves, MicroStrategy had previously borrowed $205 million from Silvergate Bank in March of last year.
Because Bitcoin
March 27, 2023
MicroStrategy has purchased around $150 million worth of Bitcoin in the last month, bringing its total holdings of the cryptocurrency to slightly over $4 billion. The company disclosed that it bought 6,455 Bitcoins between February 16 and March 23 at an average price of $23,238 per Bitcoin, according to a regulatory filing.
MicroStrategy now owns a total of 138,955 Bitcoins, with an average purchase price of $29,817 per Bitcoin, which is currently valued at approximately $3.88 billion based on the current Bitcoin price of $27,900. The recent purchase of 6,455 Bitcoins contributed to this increase in holdings.
Source: https://www.sec.gov/Archives/edgar/data/1050446/000119312523079839/d467124d8k.htm
In addition, MicroStrategy revealed that it repaid a $205 million term loan from Silvergate Bank, which was originally set to mature in 2025. The prepayment followed Silvergate's decision to wind down and liquidate. MicroStrategy paid $161 million to settle the loan in full.
The Stock of Microstrategy $MSTR is still down a lot from the all time high in February 2021.
The company also sold approximately $340 million worth of shares, as part of a previously announced share-sale agreement, along with cash reserves to pay off the Silvergate loan.
Although the software firm reported a net loss of $249.7 million in Q4 2022, compared to a loss of $90 million in the same period of the prior year, it has gained recognition for its significant investment in Bitcoin.
