Silvergate
MicroStrategy Unit Collateral $205M Loan Silvergate to Buy Bitcoin
The loan is provided through the Silvergate Exchange Network (SEN) Leverage program, which provides loans in US dollars using bitcoin as collateral. The loan amounted to a total of 820 million bitcoin, according to the control file.

MicroStrategy shares were low during pre-market trading.

MicroStrategy, a software company, is now well known for its acceptance of bitcoin. In the fourth quarter, the company accounted for approximately $ 150 million in losses in its holdings of bitcoin due to falling cryptocurrency prices.

The interest-bearing loan is only partially protected by bitcoin in a MacroStrategy collateral account, with a holder agreed upon by both parties.

MacroStrategy can use a loan to buy bitcoin or pay interest and interest-related loans or for normal business needs of MacroStrategy or MicroStrategy.

Launched in 2020, the SEN Leverage Silvergate program had $ 570.5 million in commitments at the end of last year, according to a media report.

MicroStrategy chief
"The SEN Leverage loan gives us an opportunity to further our position as an investor in the leading public corporation bitcoin," MicroStrategy chief executive Michael Saylor said in a press release.

Using borrowed money, we have transformed our bitcoin into a productive bond, which allows us to continue using our business strategy.