MicroStrategy Pays Off $205 Million Loan to Silvergate and Buys More Bitcoin

The world’s largest owner of bitcoin has resumed its bitcoin mining spree after a three-month hiatus.

Additionally, MicroStrategy founder Michael Saylor repaid his bitcoin-backed loan to Silvegate at a significant discount.

Former MicroStrategy CEO Michael Saylor tweeted on March 27 announcing a new purchase of bitcoin from his company, which was completed by March 23.

MicroStrategy bought a total of 6,455 bitcoins at an estimated average price of $23,238, with the total purchase amounting to about $150 million.

Thus, the company’s total holdings of bitcoins grew to 138,955 bitcoins, obtained for approximately $4.14 billion, at an estimated average price of $29,817 per bitcoin.

With the bitcoin price skyrocketing recently, the company’s unrealized loss has shrunk dramatically, as the loss was valued at over $1 billion until recently.

Notwithstanding the company’s first bitcoin purchase of the year, MicroStrategy repaid its loan backed by bitcoin to bankrupt Silvergate Bank.

The two sides shook hands last year to secure a $205 million loan that the software company used to accumulate more bitcoin.

According to Saylor’s tweet, MicroStrategy repaid the loan at a 22% discount.

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