Nasdaq-Listed Microstrategy Obtains $205 Million Bitcoin-Backed Loan to Buy More BTC – Finance Bitcoin News - BitcoinEthereumNews.com
Nasdaq-listed Microstrategy has obtained a $205 million bitcoin-collateralized loan from Silvergate Bank through a subsidiary to buy more bitcoin. “The interest-only term loan is secured by certain bitcoin held in Macrostrategys collateral account.”n Company to Use $205M Bitcoin-Backed Loan to Purchase Bitcoin The Nasdaq-listed pro-bitcoin software company Microstrategy anounced Tuesday that one of its subsidiaries has obtained a bitcoin-backed loan to purchase additional BTC. Microstrategy CEO Michael Saylor tweeted Tuesday: Macrostrategy, a subsidiary of Microstrategy, has closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase bitcoin. Silvergate Bank “has issued a $205 million term loan under its Silvergate Exchange Network (SEN) Leverage program to Macrostrategy LLC,” Microstrategy detailed. “The interest-only term loan is secured by certain bitcoin held in Macrostrategys collateral account with a custodian mutually authorized by Silvergate and Macrostrategy,” the company noted. Under the terms of the agreement, Macrostrategy will use the loan proceeds to purchase bitcoins, pay fees, interest, and expenses related to the loan transaction, or for its or its parent companys general corporate purposes. SEN Leverage, launched in 2020, provides institutional-grade access to capital through U.S. dollar loans collateralized by bitcoin. “The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin,” Saylor