MicroStrategy repaid its $205 million loan to Silvergate Bank

MicroStrategy repaid its $205 million loan to Silvergate Bank

MicroStrategy repaid its $205 million loan to Silvergate Bank, as reported by Michael Saylor on March 27.

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The analytics company MicroStrategy’s co-founder and former CEO, Michael Saylor, made it clear that the company had returned a $205 million loan to Silvergate Bank at a net discount of 22%. Saylor sent the US Securities and Exchange Commission a Form 8-K. (SEC).

On March 29 of last year, Silvergate Bank extended an approximately $205 million term loan to MacroStrategy, a MicroStrategy subsidiary, as part of the Silvergate Exchange Network (SEN) project, with a scheduled maturity date of March 23, 2025. But as of right now, Michael Saylor seems profitable because he received a discount of around 22%.

Between February 16, 2023 and March 23, 2023, the MicroStrategy corporation integrated an additional 6,455 bitcoins valued at over $150 million at an average cost of $23,238.

A total market capitalization of $4.14 billion, or $29,817 per bitcoin, is held by MicroStrategy Firms and its subsidiaries, who also own about 138,955 bitcoins.

The erstwhile analytics company was required to maintain a debt-to-collateral value ratio of less than 50% in accordance with a loan arrangement between MicroStrategy and Silvergate Bank. With Silvergate, MacroStrategy entered into a prepayment, waiver, and repayment agreement, allocating $161 million in prepaid Silvergate that will be fully refunded on March 24, 2023.

Furthermore, according to Form 8-K, MicroStrategy signed a new sales contract with Cowen & Company and BTIG last September to sell $500 million worth of the company’s Class A common shares.

MicroStrategy issued and sold roughly 1,348,855 shares of stock from January to March for an estimated $339 million in net proceeds.

Compiled by Coinbold