Silvergate Bank has issued a $205 million interest-only term loan to MicroStrategy that will be secured by Bitcoin held in the collateral account of the latter.
The term of the facility states that the analytics and business Intelligence Company will use the funds to purchase additional bitcoins and offset the loan charges.
The money is offered through Silvergate’s subsidiary, Silvergate Exchange Network Leverage Program, in what is considered the largest loans that will be guaranteed by certain secured BTC holdings held by a subsidiary. The parties involved in the deal have mutually authorized the custodian.
The Chief Executive Officer of Silvergate, Alan Lane, lauds the growing number of institutions that use bitcoin holding to power the growth of their business.
MicroStrategy CEO Michael Saylor notes that the loan will give the entity the resources to further its ambitions of becoming the leading listed institutional investor in BTC.
Silvergate Bank remains a cryptocurrency enthusiast, having recently acquired the halted Facebook’s Diem project. It unveiled its SEN Leverage subsidiary in 2020.
Source: Businesswire
