MicroStrategy Bought Another 6,455 Bitcoins Worth $150 Million

Business intelligence software company MicroStrategy has announced the purchase of an additional 6,455 bitcoins, worth approximately $150 million, according to a recent SEC filing. This amount of BTC was purchased between February 16 and March 23, 2023, at an average price of $23,238 per bitcoin, including fees and surcharges.

MicroStrategy and its subsidiaries currently hold a total of 138,955 bitcoins, worth approximately $4.14 billion, with an average purchase price of approximately $29,817.

The latest acquisition comes days after MacroStrategy LLC, a wholly owned subsidiary of MicroStrategy, fully repaid a $205 million term loan to Silvergate Bank. The loan was secured by certain bitcoins owned by MacroStrategy, which held a $5 million cash reserve account with Silvergate.

The loan has an expected maturity date of March 23, 2025 and has a variable interest rate of 30-day SOFR average plus 3.7%, with a floor of 3.75%. As of March 24, 2023, the floating rate equals 8.27%. Under the terms of the credit agreement, MacroStrategy is required to maintain the loan-to-collateral ratio below 50%. As of March 24, 2023, approximately 34,619 Bitcoins were held in collateral accounts set up under the loan.

MicroStrategy prepaid the loan with the proceeds from the sale of the Class A common stock issued by the company and sold pursuant to its sales agreement with Cowen and Company, LLC and BTIG, LLC as sales agents. Between January 1, 2023 and March 24, 2023, MicroStrategy issued and sold 1,348,855 shares pursuant to the sale agreement, raising total net assets of approximately $339.4 million.

MicroStrategy, which has invested heavily in bitcoin over the past few years, sees the cryptocurrency as a long-term store of value. MicroStrategy CEO Michael Saylor is an avid supporter of Bitcoin, and the company has purchased a large amount of Bitcoin since its first $250 million investment in August 2020. The company’s overall balance sheet. With the latest BTC acquisition, MicroStrategy is showing its commitment to continue its Bitcoin strategy.

  • MicroStrategy Denies Margin Call for $205M Bitcoin Loan Collateral
  • MicroStrategy Bought $190M in Bitcoin After Borrowing $205M

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according to Kyptos

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