HomeCryptocurrenciesMicroStrategy Buys $150 Million in Bitcoin After Settling Silvergate Loan

MicroStrategy Buys $150 Million in Bitcoin After Settling Silvergate Loan

Software company MicroStrategy continues to be bullish on Bitcoin despite the fact that its co-founder and crypto-advocate Michael Saylor stepped down as CEO last year. The company revealed last week that it acquired more Bitcoin, spending roughly $150 million for 6,455 coins.

MicroStrategy’s investment came after the company paid off the remainder of the $205 million loan it took from the collapsed Silvergate Bank. It paid the last portion, amounting to $161 million, on Friday and received back 34,619 Bitcoins it surrendered as collateral. In order to settle the loan, MicroStrategy’s raised close to $340 million by selling its shares.

MicroStrategy made its newest Bitcoin investment over the past five weeks, according to U.S. Securities and Exchange Commission (SEC) filing. The company now holds 138,955 Bitcoins, making them the largest corporate holder of the cryptocurrency on the market. The Bitcoins were purchased at an average price of $29,817, valuing the investment at roughly $4.1 billion. The current value of their holdings is at $3.75 billion based on this week’s Bitcoin price of around $27,000.

MicroStrategy stock took a hit in the past five days, sliding 15 percent to $234.34 per share on Tuesday. Still, the company’s shares are more than 60 percent up year-to-date.

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