Microstrategy Repays Silvergate Loan As It Expands Bitcoin Holdings
Amidst the recent crypto market recovery, MicroStrategy, a business intelligence software company known in the crypto community for accumulating Bitcoin (BTC), has announced its first Bitcoin purchase of the year.
Alongside its latest Bitcoin acquisition, the software company also announced in an 8-K form deposit as U.S Securities and Exchange Commission (SEC) that paid off its outstanding loan with troubled US bank Silvergate.
Microstrategy resumes BTC buying spree after loan settlement
Microstrategy started its Bitcoin accumulation in 2020 and since then the company has been known for large Bitcoin purchases. bitcoin.
Although the company has gone on a three-month hiatus since its significant losses recorded in 2022, it has now resumed its BTC purchases, according to its latest announcement.
Related Reading: US Government Holds More Bitcoin Than MicroStrategy and Tesla Combined
MicroStrategy co-founder and former CEO Michael Saylor disclosed in a Twitter publish On March 27, the company acquired an additional 6,455 BTC worth approximately $150 million at an average price of $23,238.
This latest acquisition has now expanded the company’s footprint bitcoin its holdings by nearly 10%, bringing its total Bitcoin holdings to 138,955 BTC, bought for $4.1 billion at an average of $29,817 per coin.
Notably, last year, amid the global market downtrend, Microstrategy initiated a $205 million loan with Silvergate, which the company used to purchase a large amount of Bitcoin.
While the company posted significant losses at the time, its losses have eased due to BTC’s recovery since January. According to Micheal Saylor, the Silvergate loan was paid off at a 22% discount.
The former CEO tweeted:
MicroStrategy repaid its $205 million Silvergate loan at a 22% discount. On 03/23/23, $MSTR acquired ~6,455 additional bitcoins for ~$150M at an average of ~$23,238 per #bitcoin and held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin.
Bitcoin Price Action Over the Last Week
following your fast appreciation in value Since the beginning of the month due to the US banking crisis, Bitcoin has seen a notable pullback over the last 7 days by almost 3%. BTC has dropped from a high of $28,783 on March 22 to trade below $28,000 as of today.
This drop comes after Federal Reserve Chairman Jerome Powell announced another hike in interest rates. Over the past week, the asset has seen a downward trend in both its market capitalization and trading volume, indicating a downturn in your buying pressure.
Related Reading: Bitcoin and Crypto Face These Important Dates Next Week
At the time of writing, Bitcoin currently has a 24-hour trading volume of $13.9 billion, down from the figure seen earlier this month of over $50 billion during its rally.
Meanwhile, over the last 24 hours, Bitcoin is currently in a downtrend alongside the rest of the crypto market. The asset is down nearly 4% at the time of writing, with a trading price of $26,858.
Unsplash featured image, TradingView chart