MicroStrategy loans $205 million to buy Bitcoin

An American MicroStrategy is famous for its cryptocurrency investments. Recently it has reinforced its position as the top institutional cryptocurrency investor once more. MacroStrategy, a subsidiary of MicroStrategy, received a loan of $205 million secured by its crypto assets. An official news release was issued. In turn, Silvergate Bank* made the loan to purchase bitcoins.

Why does MicroStrategy accumulate cryptocurrency?

MicroStrategy had 124,391 BTC at the end of December 2021, according to the Bitcoin Treasuries portal. The company’s capital has increased to 128,687 BTC as a result of the new leveraged purchase. Before, MicroStrategy invested in cryptocurrency for the first time in February, for a total of $25 million. In an interview, MicroStrategy’s CEO revealed that bitcoin is a great tool for investment. He added that cryptocurrency aids in the conversion of liabilities into assets. According to Saylor, bitcoin is growing at a pace of more than 10% each year. Consequently, it’s a good idea to take out a 5 % cash loan and invest in a promising asset. Sailor also suggests using BTC as an investment rather than a means of payment.

Remark: the bit4you trading platform does not give any investment advice. Operate on the cryptocurrency market at your own risk.

MicroStrategy in 2022

MicroStrategy is the first public company to transfer some of its capital reserves into bitcoin in August 2020. The company has continued to invest in cryptocurrency and in December secured debt funding with a $650 million convertible bond sale. MicroStrategy launched new debt instruments in February 2022, issuing more than $1 billion in bonds, and reinvesting the proceeds in bitcoin. However, MicroStrategy stated in early 2021 that it would continue to invest extra income in bitcoin and would look into new chances to invest in digital gold.

Silvergate Bank: The leverage service of the Silvergate Exchange Network, which opened in 2020, facilitates companies to get BTC-backed loans in US dollars. As of December 31, the bank has around $570 million in obligations.

The bit4you cryptocurrency trading platform offers a wide range of crypto tools. It includes crypto exchange, trading, staking, currency-to-currency swap, Demo mode, etc. Nowadays, the list includes more than 45 of the most profitable coins and it is constantly updated. Also, we are pleased to inform you that cryptocurrency staking is already available for our customers! Visit the education section Academy to learn more about staking. If you have a friend interested in crypto, do not hesitate to invite him and get a special reward for a referral. The crypto world is a new reality, so stay up to date with bit4you!

Valentyna Bereza, Team bit4you.




bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.

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bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.

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