American company, MicroStrategy, has acquired an additional 4,167 BTC, worth approximately $190.5 million as of writing.
The Bitcoin was obtained through a loan against the company’s current holdings. The loan was funded by Silvergate Bank for $205 million and carries a three-year term. The collateral runs quite a bit more, however, at a whopping $820 million.
CEO Michael Saylor offered MicroStrategy's view on BTC saying, “We view Bitcoin as pristine collateral for the digital age and believe this transaction allows us to continue pursuing our Bitcoin acquisition strategy in a manner accretive to our shareholders.”
Overall, MicroStrategy’s stock has grown by 300% since the company began investing in Bitcoin. The company has continued to add to its Bitcoin portfolio in 2022, with an average purchase price of $45,714. Despite the larger price tag, the companies overall average Bitcoin purchase price is currently around $30,700.
MicroStrategy's current breakdown of holdings includes:
The above numbers are according to a recent SEC filing from MicroStrategy.
Will Saylor Support BTC Bonds?
Although Mr. Saylor is a big supporter of BTC investing, he isn't looking to purchase any BTC bonds anytime soon, according to a recent interview.
The interview quoted him saying “I’d love to see a day where people eventually sell Bitcoin-backed bonds like mortgage-backed securities. The market is not quite ready for that right now. The next best idea was a term loan from a major bank.”
He explained further saying it’s a different type of risk to consider.
Who is Microstrategy?
MicroStrategy is a tech company that offers business intelligence, mobile software, and cloud-based services. The company was founded in 1989 and is currently headquartered in Tysons, Virginia.
It has several subsidiaries including MicroStrategy Services Corporation, MicroStrategy UK Limited, and Usher Incorporated.