MicroStrategy settles $205M loan at a reduced rate and increases Bitcoin holdings, now possessing 138,955 Bitcoin with an average acquisition cost of $29,817 per Bitcoin
MicroStrategy, a publicly-traded business intelligence company, has announced that it has repaid its $205 million loan to Silvergate Bank at a significant discount.
According to a recently filed Form 8-K, MicroStrategy’s wholly-owned subsidiary, MacroStrategy, entered into a Credit and Security Agreement with Silvergate Bank on March 23, 2022.
The agreement saw Silvergate issue a $205 million term loan with a scheduled maturity date of March 23, 2025, and an interest rate of 8.27% as of March 24, 2023.
The loan was collateralized by certain Bitcoin owned by MacroStrategy and a $5 million cash reserve account held at Silvergate.
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