Silvergate Bank Issues $205 Million Loan to MacroStrategy Collateralized by Bitcoin
March 29 2022 - 8:30AM
Business Wire
Loan proceeds to be used by
MacroStrategy, a subsidiary of MicroStrategy, to acquire additional
bitcoins
Silvergate Bank, a subsidiary of Silvergate Capital Corporation
(NYSE: SI), the leading provider of innovative financial
infrastructure solutions and services for the growing digital
currency industry, today announced it has issued a $205 million
term loan under its Silvergate Exchange Network (SEN) Leverage
program to MacroStrategy LLC, a subsidiary of MicroStrategy
Incorporated (Nasdaq: MSTR) which is the largest independent
publicly traded analytics and business intelligence company.
The interest-only term loan is secured by certain bitcoin held
in MacroStrategy’s collateral account with a custodian mutually
authorized by Silvergate and MacroStrategy. Under the terms of the
agreement, MacroStrategy will use the loan proceeds (i) to purchase
bitcoins, (ii) to pay fees, interest, and expenses related to the
loan transaction, or (iii) for MacroStrategy’s or MicroStrategy’s
general corporate purposes.
“We’re thrilled to add MicroStrategy to our growing list of SEN
Leverage borrowers,” said Alan Lane, Chief Executive Officer of
Silvergate. “Their innovative approach to treasury management is an
exceptional example of how institutions can utilize their bitcoin
to support and grow their business.”
SEN Leverage, which launched in 2020, provides secure,
institutional-grade access to capital through U.S. dollar loans
collateralized by bitcoin. As of December 31, 2021, SEN Leverage
had grown to approximately $570.5 million in commitments,
demonstrating the increased need for access to capital in the
digital currency industry.
“The SEN Leverage loan gives us an opportunity to further our
position as the leading public company investor in bitcoin,” said
Michael Saylor, Chairman and Chief Executive Officer of
MicroStrategy. “Using the capital from the loan, we’ve effectively
turned our bitcoin into productive collateral, which allows us to
further execute against our business strategy.”
About Silvergate
Silvergate Capital Corporation (NYSE: SI) is the leading
provider of innovative financial infrastructure solutions and
services for the growing digital currency industry. The Company’s
real-time payments platform, known as the Silvergate Exchange
Network, is at the heart of its customer-centric suite of payments,
lending and funding solutions serving an expanding class of digital
currency companies and investors around the world. Silvergate is
enabling the rapid growth of digital currency markets and reshaping
global commerce for a digital currency future.
About MicroStrategy Incorporated
MicroStrategy (Nasdaq: MSTR) is the largest independent publicly
traded analytics and business intelligence company. The
MicroStrategy analytics platform has been rated as the best in
enterprise analytics and is used by many of the world’s most
admired brands in the Fortune Global 500. We pursue two corporate
strategies: (1) grow our enterprise analytics software business to
promote our vision of Intelligence Everywhere and (2) acquire and
hold bitcoin, which we view as a dependable store of value
supported by a robust, public, opensource architecture untethered
to sovereign monetary policy. For more information about
MicroStrategy, visit www.microstrategy.com.
MicroStrategy is a registered trademark of MicroStrategy
Incorporated in the United States and certain other countries.
Other product and company names mentioned herein may be the
trademarks of their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20220329005397/en/
For Silvergate: Natalie Short press@silvergate.com
For MicroStrategy: Investor Relations ir@microstrategy.com
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