MacroStrategy LLC, a subsidiary of business intelligence company MicroStrategy, has taken out a $205 million loan to buy Bitcoin (BTC). MicroStrategy announced this news earlier today, noting that San Diego-based Silvergate Bank serviced this loan through the Silvergate Exchange Network (SEN), which is famous for offering collateralized loans on crypto.
According to the announcement, MacroStrategy LLC secured the interest-only loan after using its existing BTC holdings as collateral. The collateralized BTC is currently held in the company’s collateral account with a custodian that both MacroStrategy and Silvergate Capital authorized.
Apart from purchasing more BTC, MacroStrategy plans to use the funds to pay fees, interest, and expenses related to the loan transaction. The firm also seeks to use the money to settle its general corporate costs or those of its parent company.
