According to a filing with the SEC, MicroStrategy closed the $205 million Silvergate loan in one go and purchased 6,455 Bitcoins (BTC).
MicroStrategy has started investing in Bitcoin (BTC) after a long hiatus.
MicroStrategy, the software company co-founded by Michael Saylor, is buying more BTC amid the recent cryptocurrency market recovery. Former CEO Michael Saylor announced on Twitter that the company has repaid a $205 million loan from Silvergate. Referring to an 8-K form submitted to the SEC, Saylor emphasized that MicroStrategy repaid the Silvergate loan with a 22% discount.
The former CEO said that the company has also purchased a significant amount of BTC as of March 23, purchasing 6,455 BTC for $150 million, or an average of $23,238. Saylor said that with the acquisition, MicroStrategy’s total Bitcoin reserves increased to 138,955 BTC and purchased $4.1 billion at an average of $29,817 per cryptocurrency.
MicroStrategy closes Silvergate loan in one go
In March 2022, the company borrowed $205 million from Silvergate Bank. According to an SEC filing released Monday, the remaining principal of the loan from the now-bankrupt Silvergate Bank has been reportedly fully paid off.
The loan repayment was made last Friday and totaled $161 million. As part of the settlement of the loan, 34,619 Bitcoins held as collateral for the paper were returned to MicroStrategy’s custody. The Silvergate loan was received in March 2022 with an original loan balance of $205 million.
cryptocoin.comAs you follow, Silvergate was among the banks that went bankrupt in March.
Will Bitcoin recover after MicroStrategy’s acquisitions?
Microstrategy is one of the largest Bitcoin (BTC) whales in the industry. MicreStrategy’s decisions often lead to some movement in the price of BTC.
But BTC is currently still hovering below $28,000. It is spending time between the $28,263 resistance and the $27,119 support level. Analysis of the 4-hour chart seems to point to the original cryptocurrency heading towards consolidation. However, a breakout from the symmetrical triangle could welcome more volatility for BTC.
If the bulls can take control, we could see BTC break the current resistance and face new resistance around $28,000 and $30,000, which forms new support. At the time of writing, Bitcoin (BTC) was trading at $27,950, up 0.5% in the last 24 hours. However, it fell 59.48% from its ATH level of $69,044, which it reached in November 2021.
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