MicroStrategy, the business intelligence firm that is also one of the biggest investors in Bitcoin, has announced that it has acquired more BTC in the recent cryptocurrency market recovery. The company’s co-founder and former CEO, Michael Saylor, took to Twitter on March 27, 2023 to reveal that MicroStrategy has repaid its $205 million loan to Silvergate at a 22% discount. Saylor also revealed that the company has acquired 6,455 BTC for $150 million, at an average price of $23,238 per coin and now holds a total of 138,955 BTC, purchased for $4.1 billion at an average of $29,817 per coin.
According to a form 8-K filing with the United States Securities and Exchange Commission, MicroStrategy acquired its latest batch of Bitcoin between Feb. 16 and March 23, 2023, increasing its total Bitcoin holdings. Previously, the company’s subsidiary, MacroStrategy, had a $205 million term loan from Silvergate Bank under its Silvergate Exchange Network Leverage program, in March 2022, collateralized by certain Bitcoin owned by MacroStrategy and a scheduled maturity date of March 23, 2025.
MacroStrategy and Silvergate entered into a prepayment, waiver and payoff to credit and security agreement, with MacroStrategy voluntarily prepaying around $161 million in full repayment. “Upon Silvergate’s receipt of the payoff amount, the credit agreement was terminated, and Silvergate released its security interest in all of MacroStrategy’s assets collateralizing the loan, including the Bitcoin that was serving as collateral,” the filing stated.
In addition to this, MicroStrategy is planning to sell its aggregated class A common stock worth $500,000,000, under an agreement with Cowen and Company and BTIG. MicroStrategy issued and sold an aggregate of 1,348,855 shares under the sales agreement for aggregate net proceeds to MicroStrategy of roughly $339 million.
The latest Bitcoin acquisition by MicroStrategy is the first such transaction in 2023, following the previous purchase that took place at the end of December 2023. MicroStrategy bought 2,395 BTC at an average price of $17,181 for a total of $42.8 million, between Nov. 1 and Dec. 21.
MicroStrategy did not immediately respond to Cointelegraph’s request for comment. However, the company’s continued investment in Bitcoin highlights its belief in the long-term potential of the cryptocurrency. The move also comes as other major investors like Cathie Wood’s ARK invest in Coinbase shares, showing the adoption of cryptocurrencies by mainstream investors.
The recent cryptocurrency market recovery has sparked renewed interest in Bitcoin and other cryptocurrencies, with many investors seeing it as a potential safe haven asset. MicroStrategy’s move to acquire more BTC shows that it has a long-term vision for the cryptocurrency space and is willing to invest accordingly.
While some investors may still be cautious about investing in cryptocurrencies, the continued adoption and development of the digital assets by major companies like MicroStrategy may encourage more mainstream investors to take a closer look at cryptocurrencies. As the market continues to evolve and mature, it will be interesting to see how companies like MicroStrategy continue to navigate the space and the impact their investments have on the overall market.