MicroStrategy Repays Silvergate Loan and Increases Bitcoin Holdings with New Purchase
MicroStrategy, a publicly-traded business intelligence firm, has announced that it has paid off a $1.05 billion loan to Silvergate Bank ahead of schedule. This news comes just months after the company had announced its plans to buy Bitcoin with the borrowed funds.
In a statement, MicroStrategy CEO Michael Saylor said, "We continue to believe that purchasing Bitcoin at this time is a sound financial decision for MicroStrategy."
In fact, the company has already followed through on that belief. Shortly after paying off the loan, MicroStrategy announced that it had purchased an additional 253 Bitcoins for approximately $15 million, bringing its total Bitcoin holdings to 91,579 BTC.
MicroStrategy has been a prominent player in the cryptocurrency space, having first invested in Bitcoin in August 2020. Since then, the company has continued to accumulate Bitcoin, using any excess cash to make purchases. In February of this year, MicroStrategy made headlines when it announced that it had purchased $1.05 billion in Bitcoin, which was funded by the aforementioned loan from Silvergate Bank.
Despite criticism from some investors and analysts, MicroStrategy has remained steadfast in its commitment to Bitcoin. Saylor has repeatedly argued that Bitcoin is a superior store of value compared to traditional assets such as gold, citing its limited supply and decentralized nature.
MicroStrategy's latest moves in the Bitcoin space indicate that the company is not slowing down anytime soon. With its substantial holdings and strong conviction in the value of Bitcoin, MicroStrategy could potentially continue to make waves in the cryptocurrency market.