Last March, MicroStrategy, a software company co-founded by crypto enthusiast Michael Saylor, borrowed $205 million from Silvergate Bank. However, in a recent filing with the U.S. Securities and Exchange Commission, the company disclosed that it has prepaid the remaining principal of the loan from the now-defunct crypto-focused bank. MicroStrategy holds a significant amount of bitcoin (BTC).
Over the past five weeks, MicroStrategy acquired approximately 6,455 bitcoins for about $150 million, at a rate of roughly $23,238 per coin. Additionally, the company announced on Friday that it has fully paid off its $205 million loan taken from the now-defunct Silvergate Bank. The total loan payoff amounted to $161 million, and as part of the loan satisfaction, MicroStrategy received custody of 34,619 bitcoins that had been held as collateral. The loan had been obtained by the company in March of last year.
MicroStrategy has added 6,455 bitcoins to its portfolio, bringing the company's total holdings to 138,955 bitcoins, which were purchased at an average price of $29,817 each. The current value of the bitcoins, based on the current bitcoin price of $27,900, is approximately $3.88 billion. In addition, the company has disclosed that it raised $339.4 million this year by selling its shares and used the proceeds to repay the loan it had obtained from Silvergate Bank.