Cryptocurrencies
MicroStrategy Borrows Against Holdings to Buy More Bitcoin
- The $205 million loan is backed by $820 million of Bitcoin
- MacroStrategy unit loan was done through SEN Leverage program
This article is for subscribers only.
MicroStrategy Inc., the software company controlled by entrepreneur Michael Saylor that’s made investing in Bitcoin central to its corporate strategy, is borrowing against its digital-asset holdings for the first time to buy more of the cryptocurrency.
The Tysons Corner, Virginia-based company’s MacroStrategy unit received a $205 million three-year term loan from a unit of Silvergate Bank, the firms said in a statement Tuesday. The loan is backed by collateral roughly equal to four times its size or $820 million, according to company filings. The MicroStrategy unit held about $2.5 billion in Bitcoin at the end of December, according to corporate filings.