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.
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Valentyna Bereza, Team bit4you.