MicroStrategy, repay its $205 million loan from Silvergate Bank at a 22% discount. The move was made possible by the sale of $220 million worth of senior secured notes, which eliminated the company’s outstanding debt, reduced its interest expense, and increased its financial flexibility.
MicroStrategy Continues to Double Down on Bitcoin Holdings Despite Criticisms
In addition to repaying its loan, MicroStrategy has also continued to add to its Bitcoin holdings. As of March 23, 2023, the company has acquired an additional 6,455 Bitcoins for $150 million at an average price of $23,238 per Bitcoin. This brings its total Bitcoin holdings to 138,955 BTC, acquired for $4.14 billion at an average price of $29,817 per Bitcoin.
MicroStrategy’s heavy reliance on Bitcoin has drawn criticism from some analysts who believe that the company is taking on too much risk by investing so heavily in a single asset. However, CEO Michael Saylor remains bullish on the cryptocurrency’s potential to become the dominant global monetary system.
With its latest acquisition, MicroStrategy’s Bitcoin holdings now represent over 90% of the company’s total market capitalization. While the company’s heavy reliance on Bitcoin may be seen as risky by some, MicroStrategy continues to double down on its bullish stance on the cryptocurrency.