Publicly traded business intelligence and analytics company – MicroStrategy has repaid its $205 million loan amount to the collapsed Silvergate Bank as per Michael Saylor’s tweet on March 27.
Michael Saylor, co-founder and former CEO of analytics firm MicroStrategy, clarified that the firm had returned a $205 million loan to Silvergate Bank at a net discount of 22%. Saylor submitted a Form 8-K to the US Security and Exchange Commission (SEC).
Silvergate Bank issued a nearly $205 million term loan to MacroStrategy, the subsidiary of MicroStrategy, under the Silvergate Exchange Network (SEN) project on March 29 last year, along with the scheduled maturity date of March 23, 2025. But at this point, Michael Saylor appears profitable as he got nearly a 22% discount.
According to Form 8-K, the MicroStrategy company integrated an additional 6,455 bitcoins worth approximately $150 million between February 16, 2023 and March 23, 2023 at an average cost of $23,238.
Additionally, MicroStrategy Firms and its subsidiaries own approximately 138,955 bitcoins to date, for a total market valuation of $4.14 billion at an average of $29,817 per Bitcoin value.
According to a credit agreement between MicroStrategy and Silvergate Bank, the former analytics firm needed to maintain a debt-to-collateral value ratio of less than 50%. MacroStrategy filed into a prepayment, waiver, and repayment agreement with Silvergate and allocated a prepaid Silvergate of about $161 million to be completely refunded on March 24. 2023.
In addition, according to Form 8-K, MicroStrategy signed another sales agreement last September with Cowen & Company and BTIG to market $500 million worth of the firm’s Class A common stock.
From January to March 24, MicroStrategy issued and sold approximately 1,348,855 shares of stock for an estimated $339 million in net proceeds.
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