Marco Bello
Microstrategy (NASDAQ:MSTR) on Monday said it paid off a $205M loan it had with Silvergate Capital (SI) two years early, releasing 34,619 bitcoins (BTC-USD) held as collateral for the loan. The software company also announced it acquired more than 6,000 bitcoin since mid-February and raised more than $300M from the sale of its shares.
On March 24, MSTR, headed by bitcoin fan Michael Saylor, voluntarily paid ~$161.0M to repay the loan and all other obligations with Silvergate (SI) under their credit agreement. The loan was scheduled to mature on March 23, 2025 and bore interest at a floating rate equal to the SOFR 30-day average plus 3.70%, with a floor of 3.75%. As of March 24, 2023, the floating rate qualed 8.27%.
Under the company’s at-the-market share sales agreement, MicroStrategy (MSTR) sold a total of almost 1.35M shares for net proceeds of ~$339.4M. Some the the net proceeds from the share sale plus $5.0M of cash reserve held by Silvergate (SI) were used to pay off the loan.
MSTR shares edged up 0.1% in Monday premarket trading.
The company also said it acquired 6,455 bitcoins (BTC-USD) for ~$150M ini cash, at an average price of $23,238 per bitcoin, between Feb. 16, 2023 and March 23, 2023.
As of March 23, MicroStrategy (MSTR) held a total of 138,955 bitcoins, which were acquired at an aggregate purchase price of ~$4.14B and an average purchase price of ~$29,817 per bitcoin, including fees and expenses.
Earlier, Silvergate (SI) agreed to the prepayment of the secured term loan issued under its SEN Leverage program. Recall that earlier this month Silvergate Capital (SI) announced plans to wind down operations and liquidate its Silvergate Bank subsidiary.
