MicroStrategy continues to stack up bitcoin, aided by a steep discount on a loan taken from Silvergate Bank.
MicroStrategy announced the full repayment of a $205 million bitcoin-backed loan at a 22% discount for $160 million, as well as the acquisition of an additional 6,455 BTC, bringing their total holdings to 138,955 BTC.
According a tweet by President Michael Saylor, bitcoin was acquired at an average price of approximately $29,817 per bitcoin. The loan was provided through the now-collapsed Silvergate Bank, which explains the steep discount on the loan repaid by MicroStrategy.
MicroStrategy continues to have the largest public company bitcoin holdings, with Marathon in second place holding over 100,000 fewer bitcoins than MicroStrategy.
MicroStrategy began buying bitcoin in August 2020, not selling it for the first time until December 2022 for tax loss harvesting purposes. Even then, he continued to add to his bitcoin collection, acquiring 2,500 bitcoins shortly after the sale.
MicroStrategy also recently announced plans to launch enterprise infrastructure services and content monetization solutions using the Bitcoin Lightning Network. Michael Saylor, who had been the company’s CEO since its inception, changed his role at the company in August 2022 to focus more on the company’s stated mission of advancing the adoption and development of Bitcoin.
Today’s news of a new bitcoin acquisition by the company reiterates its confidence in the long-term viability of its bitcoin investment and shows that large entities continue to acquire bitcoin as the price has risen these last weeks.