MacroStrategy Closes $205M Bitcoin-collateralized Silvergate Loan

MacroStrategy has closed a $205M Bitcoin-collateralized loan with Silvergate Bank to purchase Bitcoin. The company is a subsidiary of MicroStrategy – the largest independent publicly-traded analytics and business intelligence company. MacroStrategy issued the loan under the Silvergate Exchange Network (SEN) Leverage program. 

The news was tweeted by Michael Saylor himself, Founder and CEO of MicroStrategy.

The terms of the loan include MicroStrategy using the loan proceeds to purchase Bitcoins; paying fees, interest, and expenses related to the loan transaction; and for MacroStrategy or MicroStrategy’s general corporate purposes.

Silvergrate’s Chief Executive Office Alan Lane shared his thrill in adding MicroStrategy to their list of Leverage borrows. “Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business,” Lane added.

Meanwhile, Michael Saylor said that the SEN Leverage “gives [MicroStrategy] an opportunity to further our position as the leading public company investor in Bitcoin.”

Using the capital from the loan, we’ve effectively turned our Bitcoin into productive collateral, which allows us to further execute against our business strategy.

MacroStrategy’s collateral account containing Bitcoin – with a custodian mutually authorized by Silvergate and MacroStrategy – secures the interest-only term loan.

SEN Leverage was launched in 2020 which provides secure, institutional-grade access to capital through U.S. dollar loans collateralized by Bitcoin. The leverage program had grown by approximately $570.5 million in commitments as of December 31, 2021. This demonstrates the increased demand for capital in the digital currency industry.