Tech journalists are revealing that Microstrategy, an early Bitcoin commercial investor, is getting a $205 million loan from Silvergate that it will put towards more Bitcoin holdings.
“We are thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers,” said Silvergate CEO Alan Lane. “Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.”
That ramps up Microstrategy’s total Bitcoin involvement to a tune of $5.9 billion.
A couple of years ago, we reported on Microstrategy’s initial investments, which made it one of the earliest adopters of Bitcoin as a capital reserve asset.
Since then, lots of people have considered Microstrategy to be a ‘Bitcoin pure play.’
Tesla followed for a while, with enormous Bitcoin stakes, although Elon Musk fell short of allowing buyers to pay for Tesla electric vehicles with Bitcoin.
Last year, in that context, environmental impact became a huge issue for Bitcoin and some companies backed off.
But Microstrategy is apparently still going strong.
“MicroStrategy’s CEO, Michael Saylor, noted that the funds will provide his entity the ability to ‘further our position as the leading public company investor in bitcoin,’” writes Jordan Lyanchev at Cryptopotato. “Silvergate Bank has been involved with the crypto industry for a while. Most recently, the company acquired Facebook’s failed brainchild – Diem – and released plans to issue its own stablecoin.”
Part of what this means for investors involves the extremity of Microstrategy’s ongoing buy-in. If you think that BTC has further to go, it makes sense to consider the company’s equity as ever more securely tied to that wagon. Now, though, investors also have more types of funds, like Grayscale’s GBTC, or various options based on crypto assets, to choose from. Take a look and factor all of the above into your crypto strategy.