MacroStrategy, a subsidiary of business intelligence firm MicroStrategy, said it would buy bitcoin after receiving a multi-million dollar loan from Silvergate Bank.

On Tuesday, MicroStrategy announced that Silvergate had issued a $ 205 million loan “secured by certain bitcoins held in a MacroStrategy deposit account.” MacroStrategy will use the proceeds of the loan to buy Bitcoin (BTC), pay fees and interest associated with the loan, and cover the company’s general expenses.

“SEN Leverage Loan gives us an opportunity to cement our position as a leading investor in a public company in Bitcoin,” said Michael Saylor, CEO of MicroStrategy. “By leveraging the principal of the loan, we have effectively made our bitcoin a productive security that allows us to continue to operate in accordance with our business strategy.”

The Silvergate Exchange Network was launched in 2020 and allows companies to secure BTC-supported loans in US dollars. As of Dec. 31, he had about $ 570 million in debt, according to the bank.

After investing $ 250 million in BTC in August 2020, MicroStrategy now owns billions of cryptocurrencies through separate purchases using the company’s funds and proceeds from the sale of convertible notes in private offerings to institutional buyers. With a BTC price of $ 47,806 at the time of press release, the company’s coins are worth approximately $ 125,051.

Related: MicroStrategy CEO Will Not Sell $ 5 Billion BTC Stash Despite Crypto Winter

Silvergate has helped raise capital for many companies involved in the cryptocurrency and blockchain industries. In October, the bank extended a $ 100 million credit limit to crypto miner Marathon Digital, which will be used to fund operations and increase the number of BTC miners. Crypto.com announced a partnership with Silvergate in November that aims to allow institutional customers to deposit and withdraw money from a cryptocurrency exchange using the US dollar.

Source: CoinTelegraph

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