MacroStrategy, a subsidiary of MicroStrategy, has announced the completion of a $205 million Bitcoin-collateralized loan from Silvergate Bank, which will be used to purchase bitcoin.
Big Money Being Exchanged
A term loan of $205 million was issued by Silvergate Bankو a subsidiary of Silvergate Capital Corporation. MacroStrategy LLC, a subsidiary of MicroStrategy Incorporated, which is the largest independent publicly-traded analytics and business intelligence company, was the recipient of this loan.
A major provider of innovative financial infrastructure solutions and services for the booming digital currency industry, Silvergate Capital Corporation is headquartered in New York City.
The Silvergate Exchange Network, the Company’s real-time payments network, is at the center of its customer-centric suite of payments, loans, and funding products, which serves a rising class of digital currency enterprises and investors throughout the world. Silvergate is facilitating the rapid growth of digital currency markets while also altering global commerce in preparation for a future dominated by digital currencies.
An amount of bitcoin kept in MicroStrategy’s collateral account with a custodian that has been mutually authorized by Silvergate and MacroStrategy serves as security for the interest-only term loan.
Amounts borrowed and used for general corporate purposes: MacroStrategy will use the loan proceeds for a variety of purposes, including the purchase of Bitcoins, the payment of fees, interest, and expenses associated with the loan transaction, and the purchase of Bitcoin by MicroStrategy.
Alan Lane, Chief Executive Officer of Silvergate, said:
“We’re thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers. Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.”
MicroStrategy is the world’s largest independent publicly listed analytics and business intelligence company, with revenues exceeding $1 billion in 2015. The MicroStrategy analytics platform has been acknowledged as the finest in enterprise analytics, and it is utilized by many of the world’s most admired brands, including many of those listed in the Fortune Global 500 ranking.
In order to advance the vision of Intelligence Everywhere, the company is pursuing two corporate strategies. The first is expanding the enterprise analytics software business in order to promote the vision of Intelligence Everywhere.
The second is purchasing and holding bitcoin, which the company regards as a dependable store of value supported by a robust, public, open-source architecture that is not tied to any particular sovereign monetary policy.
Secure, institutional-grade access to financing is provided by SEN Leverage, which began operations in 2020 and offers loans in U.S. dollars collateralized by bitcoin. Since its inception, SEN Leverage has expanded to about $570.5 million in pledges, illustrating the growing need for financing in the digital currency industry.