MacroStrategy, a subsidiary of MicroStrategy, has taken out a bitcoin collateralized loan of $205 million in order to buy more bitcoin.
The loan was issued by Silvergate Bank and “is secured by certain bitcoin held in MacroStrategy’s collateral account with a custodian mutually authorized by Silvergate and MacroStrategy.
Under the terms of the agreement, MacroStrategy will use the loan proceeds to purchase bitcoins,” the company said.
“The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin,” said Michael Saylor, Chairman and Chief Executive Officer of MicroStrategy, before adding:
“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.”
The purchase will probably occur on COINBASE as previously over the next circa ten days, adding more demand pressure on bitcoin’s price.
