Saylor’s Bitcoin Strategy Looks to Pay Off as MicroStrategy Pays Off Silvergate Loan and Buys More BTC

MicroStrategy co-founder and bitcoin maximalist Michael Saylor’s bitcoin strategy apparently paid off after the software company was able to repay its remaining loan to crypto-friendly lender Silvergate and bought more BTC.

Software company MicroStrategy, also known as one of the world’s largest Bitcoin holders, has fully repaid its $205 million loan to troubled Silvergate Bank, based on its deposit with the United States Securities and Exchange Commission (SEC) last Friday.

The company made its final payment of $161 million last week for the March 2022 loan, which was due to mature in March 2025 and was secured by approximately $820 million in Bitcoin.

Last year, MicroStrategy said it would use the $205 million loan to buy more Bitcoin and for “general corporate purposes.”

The software company’s latest move came weeks after it told investors on Twitter that Silvergate Bank’s “insolvency or bankruptcy” would not “accelerate” the loan MicroStrategy withdrew from it.

“We have a loan from Silvergate which is not due until Q1 25. There are concerns regarding SI’s financial condition. For those wondering, the loan would not be accelerated due to insolvency or bankruptcy of SI. Our BTC collateral is not kept with SI and we have no other financial relationship with SI,” the tweet read.

We have a loan from Silvergate which is not due until the first quarter of 2025. There are concerns from mkt regarding the SI fin. condition. For those wondering, the loan would not accelerate due to SI’s insolvency or bankruptcy. Our BTC collateral is not kept with SI and we have no other financial relationship with SI.

—MicroStrategy (@MicroStrategy) March 2, 2023

Meanwhile, MicroStrategy’s SEC filing Monday revealed that he again purchased 6,455 bitcoins within a few weeks, which was worth “approximately $150 million in cash, at an average price of approximately $23,238 per bitcoin, including fees and expenses.”

With the recent round of purchases, the software company now holds over 130,000 Bitcoin, worth around $4.1 billion, based on the exchange rate of the world’s largest crypto asset by capitalization stock market.

Saylor, who is now executive chairman of MicroStrategy, started investing in Bitcoin in August 2020 and said the acquisition was part of the company’s strategic direction.

The recent purchase of 6,455 Bitcoin between February 16 and March 23, 2023 is by far the largest acquisition by the software company since April last year.

As of 4:46 a.m. ET Tuesday, Bitcoin posted a loss of 2.96% in the past 24 hours and was trading at $26,960.95 with a 24-hour volume of $18,583,600,176, according to the latest. data from CoinMarketCap.