Saylor's Bitcoin Strategy Seemingly Pays Off As MicroStrategy Repays Silvergate Loan, Purchases More BTC

The strategy of MicroStrategy co-founder and Bitcoin maximalist Michael Saylor on Bitcoin seemingly paid off after the software company was able to repay its remaining loan to crypto-friendly lender Silvergate and bought more BTC.

Software company MicroStrategy, also known as one of the largest Bitcoin holders in the world, has fully paid its $205 million loan to the distressed Silvergate Bank, based on its filing with the U.S. Securities and Exchange Commission (SEC) last Friday.

The company made its final payment of $161 million last week for the loan it took in March 2022, which was set to mature in March 2025 and was collateralized with approximately $820 million in Bitcoin.

Last year, MicroStrategy said it would utilize the $205 million loan to purchase more Bitcoins and for "general corporate purposes."

The latest move by the software company came a few weeks after it told investors on Twitter that the "insolvency or bankruptcy" of Silvergate Bank would not "accelerate" the loan MicroStrategy took from it.

"We have a loan from Silvergate not due until Q1 '25. There are mkt concerns re SI's fin. condition. For anyone wondering, the loan wouldn't accelerate b/c of SI insolvency or bankruptcy. Our BTC collateral isn't custodied w/ SI & we have no other financial relationship w/ SI," the tweet read.

Meanwhile, MicroStrategy's SEC filing Monday revealed that it once again purchased 6,455 Bitcoin in a span of a few weeks, which is worth "approximately $150 million in cash, at an average price of approximately $23,238 per bitcoin, inclusive of fees and expenses."

With the recent series of purchases, the software company now holds over 130,000 Bitcoin, which is worth around $4.1 billion, based on the currency rate of the world's largest crypto asset by market capitalization.

Saylor, who is now MicroStrategy's executive chairman, started investing in Bitcoin in August 2020 and said that the acquisition was part of the company's strategic focus.

The recent purchase of 6,455 Bitcoin between Feb. 16 and March 23, 2023, is by far, the largest acquisition by the software company since April of last year.

As of 4:46 a.m. ET on Tuesday, Bitcoin saw a 2.96% loss over the past 24 hours and was trading down at $26,960.95 with a 24-hour volume of $18,583,600,176, according to the latest data from CoinMarketCap.