MicroStrategy, a software company, recently made a significant move in the cryptocurrency market. The company paid off a loan from Silvergate bank ahead of schedule and also invested $150 million in bitcoins.
Despite reports of Silvergate’s bankruptcy, MicroStrategy clarified that it had only one outstanding loan that needed to be returned before 2025, and that the payment would not lead to the company’s bankruptcy.
Additionally, the company stated that it had no Bitcoin collateral held by Silvergate or any other financial relationship with the bank.
According to recent documents, MicroStrategy paid off the remaining principal on its $205 million loan and purchased an additional 6,455 bitcoins worth about $150 million over the past five weeks.
As a result, the company now holds a total of 138,955 BTC, valued at $3.88 billion. It’s worth noting, however, that MicroStrategy is not the largest holder of bitcoins. The US federal government holds 205,515 BTC worth $5.66 billion, according to 21Shares.
MicroStrategy co-founder Michael Saylor has criticized the US Department of Justice’s approach to investigating possible Silvergate fraud related to the processing of transactions on the accounts of FTX Global-affiliated firms.
US government officials have also criticized Silvergate’s role in managing FTX-related funds, calling it a “questionable practice and a blatant failure.” Despite this, MicroStrategy remains optimistic about its investment in bitcoin and its ability to continue operating successfully.