MacroStrategy Attracts $205M from Silvergate Bank to Buy Bitcoin

MacroStrategy, a subsidiary of MicroStrategy, has received a $205 million loan from Silvergate Bank to buy additional bitcoins. The company wrote in a press release that the deal is secured by “certain bitcoin” held in MacroStrategy’s collateral account. MicroStrategy CEO Michael Saylor says that with the capital from the loan, the company has turned its bitcoin into “productive collateral.”

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The latest funding will help MacroStrategy not only to buy bitcoins, but also to pay fees, interest, and expenses related to the loan transaction, or for “MacroStrategy’s or MicroStrategy’s general corporate purposes.”

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In February, MicroStrategy purchased 660 BTC for approximately $25 million in cash, bringing the total amount of bitcoin under custody to 125,051 BTC with an aggregate purchase price of $3.78 billion. The deal came after Phong Le, MicroStrategy CFO, said that the company was planning to continue buying the cryptocurrency despite the total bearish trend in the market.

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