"Saylor's trust in BTC will not collapse."
Michael Saylor, the co-founder of MicroStrategy and staunch supporter of the cryptocurrency Bitcoin (BTC) who amassed a fortune in the digital asset during the market's recovery, has repaid a $205 million loan to Silvergate Bank.
In an 8-K* filing with the US Securities and Exchange Commission (SEC), Saylor said that MicroStrategy is repaying the Silvergate loan at a 22% discount.
*Reports that companies must file with the SEC to announce major events that shareholders need to know about
Earlier, MacroStrategy, a subsidiary of MicroStrategy, received a $205 million term loan from Silvergate Bank under the Silvergate Exchange Network Leverage program in March 2022.
The loan is secured by certain BTC owned by MacroStrategy and has a scheduled maturity date of March 23, 2025.
But on March 24, 2023, MacroStrategy voluntarily made a $161 million prepayment to Silvergate in its pursuit of full repayment.
After Silvergate receives the total payment, they will terminate the credit agreement including removing all of MicroStrategy's assets including the BTC it has pledged.
Also in the filing, MicroStrategy entered into an agreement with Cowen and BTIG to sell $500 million worth of class A common stock.
Additionally, MicroStrategy reportedly bought 6,455 BTC worth $150 million on March 23 and overall it increased its total holdings of the digital asset to 138,955 worth $4.1 billion.
