MicroStrategy Settles Silvergate Debt, Acquires 6,455 Bitcoin
MicroStrategy (NASDAQ: MSTR) has settled an outstanding loan that it had in place with Silvergate Capital (NYSE: SI), while at the same time spending further funds on the acquisition of bitcoin.
The loan in question was issued in March 2022, with the firms MacroStrategy LLC subsidiary borrowing $205.0 million from the bank for what was originally to be a period of three years at a floating rate equal to the SOFR 30 day average plus 3.70%. With the shuttering of Silvergate however, the firm has reached a settlement on the debt to remove it from its books, while securing a deal on the settlement at the same time.
Silvergate has agreed to settle the debt for a figure of $161.0 million, which will see the debt cancelled and the 34,619 bitcoin previously held in a collateral account released from security.
READ: Silvergate Capital Shuts Down Silvergate Bank, Shares Crash Nearly 50%
At the same time, the firm this morning revealed it has acquired a further 6,455 bitcoin, bringing its total holdings to 138,955 bitcoin. The additional BTC was acquired between February 16 and March 23, at an average price of $23,238 per each, for total consideration of roughly $150.0 million.
The settlement as well as the recent purchases of bitcoin were funded via the firms at-the-market financing program, which has sold a total of 1.3 million shares since the start of the year, generating net proceeds of $339.4 million.
MicroStrategy last traded at $256.67 on the Nasdaq.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
