Silvergate to lend MicroStrategy $205 million to acquire Bitcoin

MicroStrategy’s subsidiary Macrostrategy has received a $205 million loan from Silvergate Bank, which is secured by a stake in BTC. The company of Michael Saylor intends to use the funds to purchase even more bitcoins.

According to a March 29 press release, Silvergate Capital Corporation’s banking subsidiary has agreed to transfer funds as part of one of the largest loans secured by bitcoins held by the corporation. Both parties to the transaction “mutually authorised” the depositary.

MicroStrategy’s subsidiary Macrostrategy will use the funds to buy more coins under the terms of the agreement. It will also cover the costs of the loan, including fees, interest, expenses, and some of the company’s overall corporate objectives. Alan Lane, CEO of Silvergate, said:

SEN Leverage, which was founded in 2020, is an institutional lender that has already provided $600 million in bitcoin-backed loans. According to MicroStrategy CEO Michael Saylor, the funds will allow his company to “strengthen its position as a leading bitcoin investor among public companies.”

Silvergate buys Diem

Silvergate Bank has been involved in the cryptocurrency industry for a long time. The company recently acquired Facebook’s failed baby, Diem, and announced plans to launch its own stablecoin. The total value of the transaction was 182 million dollars. Alan Lane had this to say about the situation at the time:

To further enable barrier-free money flow, we identified the need for a US dollar-based stablecoin that is regulated and highly scalable. Our plan is to meet this demand by launching a stablecoin [on the market] in 2022, which will allow us to keep the assets we have acquired so far as well as our existing technology.

Read Also: Canadian PM candidate wants to allow bitcoin payments

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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