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• Financing partner for the crypto industry
• Bitcoin as a corporate strategy
Michael Saylor, founder and CEO of MicroStrategy, has massively increased his crypto portfolio with the subsidiary MacroStrategy Inc., as Bloomberg reports. The entrepreneur also buys Bitcoin for $205 million.
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Michael Saylor, “Bitcoin-König”
According to Bitcoin Trasuries, MicroStrategy holds 125,051 bitcoins worth $5.8 billion (as of 03/31/2022). This represents 104 percent of the company’s $5.57 billion market cap. By comparison, Tesla owns 43,200 bitcoins worth $2.003 billion, 0.3 percent of the company’s value.
Initially, Saylor was considered an opponent of cryptocurrencies, as BTC Echo reports, but since 2020 he has massively inverted company reserves into Bitcoin and has made the cyber currency a central part of his corporate strategy. As a result, the price increase of the Bitcoin 2021 caused a radical increase in the market capitalization of MicroStrategy. Since then, Saylor has rarely missed a tweet recommending buying the cybercurrency and has been dubbed the “Bitcoin King” in the media. He also aligned his account on Twitter to Bitcoin and announced his intention to buy it there.
MacroStrategy, a subsidiary of @MicroStrategyhas closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase #bitcoin. $MSTR $ SIhttps://t.co/QYw2ZgeE3U
– Michael Saylor⚡️ (@saylor) March 29, 2022
Million loan via Silvergate
For the first time, Saylor borrowed $205 million from Silvergate Bank using MacroStrategy. Silvergate Bank is a subsidiary of Silvergate Capital Corporation and is considered the leading financing partner for the growing crypto industry. Launched in 2020, the Silvergate Exchange Network Leverage program, or SEN Leverage for short, provides secure access to capital through institutional-grade U.S. dollar lending backed by Bitcoin, according to the corporation. By the end of 2021, SEN Leverage had already grown to $570.5 million in lending volumes. This shows the immense capital requirements in the field of crypto currencies.
MacroStrategy’s loan is collateralized with $820 million in Bitcoin and has a three-year term, the companies said. In the companies’ announcement via businesswire, Alan Lane, CEO of Silvergate Bank, emphasized how pleased he is to have MicroStrategy among SEN Leverage’s customers. He went on to say of MicroStrategy that it is an “extraordinary example of how institutions can use their bitcoin to support and grow their business.”
The loan gives his company the opportunity to expand its leading position among Bitcoin investors, said Michael Saylor on the loan. “Using the capital from the loan, we have effectively turned our bitcoin into productive collateral that allows us to continue executing our business strategy.”
Good prospects for bitcoin
Hardly anyone sees the development of Bitcoin as enthusiastically as Saylor, who has linked his company so massively to Bitcoin. The announcement of Saylor’s Bitcoin purchase via Twitter was received euphorically in the crypto universe. MicroStrategy and Silvergate Capital stocks have been positive over the past few weeks.
The war in Ukraine has expanded the uses of cryptocurrencies and brought them to the attention of more traditional investors. After the rally in October last year and the low at the end of January, the Bitcoin price is now showing a tailwind again.
Editor: finanzen.net
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