MicroStrategy continues to accumulate bitcoins, with the help of a sizable discount on a loan taken out at Silvergate Bank.
MicroStrategy has announced the repayment of a $205M bitcoin-backed loan at a 22% discount for $160M, along with an additional acquisition of 6,455 BTC, bringing its total holdings to 138,955 BTC.
according to tweet by Chairman Michael Saylor, bitcoins were purchased at an average price of ~$29,817 per bitcoin. The loan was through the now-collapsed Silvergate Bank, which explains the steep discount on the loan paid by MicroStrategy.
MicroStrategy continues to have the largest public company bitcoin holdings, with Marathon in second place holding more than 100,000 bitcoins less than MicroStrategy.
MicroStrategy began buying bitcoin back in August 2020, only to sell it for the first time in December 2022 for tax loss harvesting purposes. Even then, he continued to increase his bitcoin collection, earning 2,500 bitcoins shortly after the sale.
MicroStrategy also recently announced plans to release enterprise infrastructure services and content monetization solutions using the Bitcoin Lightning Network. Michael Saylor, who has been the company’s CEO since its inception, changed his role in the company in August 2022 to focus more on the company’s mission which states the adoption and development of Bitcoin.
Today’s news of further bitcoin acquisitions by these companies expresses confidence in the long-term viability of bitcoin investments, and shows that large entities continue to acquire bitcoins as prices have ramped up in recent weeks.