MicroStrategy Acquired 6,455 BTC for $150M: Filing
Michael Saylor’s MicroStrategy bought 6,455 BTC for $150 million from Feb. 16th to Mar. 23rd at an average price of $23,238 per coin, the company’s latest 8-K filing with the US Securities and Exchange Commission (SEC) revealed. The firm also paid off its loan from Silvergate Bank at a 22% discount.
MicroStrategy Repays its Silvergate Bank Loan at a 22% Discount
According to its latest 8-K filing with the SEC, MicroStrategy has acquired 6,455 BTC for $150 million with an average price of $23,238 per BTC between 16th February and March 23rd, 2023. As of March 2023, the company and its subsidiaries held approximately 138,955 BTC with an aggregate purchase price of $4.14 billion, with the average price being $29,817.
Michael Saylor’s business intelligence firm also paid off its $205 million loan from the troubled Silvergate Bank at a 22% discount rate. Taking the discount into account, the payoff totaled $161 million. Following the loan payment, 34,619 bitcoin held as collateral for the paper were transferred to MicroStrategy’s custody.
In the report, MicroStrategy also said it secured $339.4 million in 2023 from its at-the-market share sale plan, using its proceeds to completely settle the Silvergate loan. The company’s shares were up around 1% in premarket trading Monday.
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MicroStrategy’s Unrealized Loss Shrinks Thanks to Recent BTC Rally
The latest Bitcoin purchase reinforces MicroStrategy’s position as the biggest corporate holder of BTC in the world. With the recent rally in Bitcoin, MicroStrategy’s unrealized loss, valued at more than $1 billion at one point, has contracted substantially.
Earlier this year, the firm reported an impairment charge of $197.6 million on its BTC holdings and disclosed a net loss of $249.7 million in its Q4 earnings report. The firm said it would continue increasing its holdings in the world’s biggest cryptocurrency.
But that statement was no surprise given that MicroStrategy remained committed to Bitcoin throughout 2022 – arguably the worst-ever year for crypto. The firm bought 8,813 bitcoins during last year’s crypto decline and reported a $1.28 billion impairment loss for the year.
MicroStrategy co-founder Michael Saylor abandoned his role as the company’s CEO last summer to focus more on the company’s BTC investments. Saylor remained MicroStrategy’s executive chairman while Phong Le, the company’s president, succeeded him as CEO.
Editorial Update (27th March 2023, 9:50 AM EST): The article has been updated to include more information and context.
In your opinion, why does MicroStrategy remain so confident in Bitcoin compared to other institutional investors? Let us know in the comments below.