Billionaire Michael Saylor is doubling down on his commitment to Bitcoin with his latest move. The cryptocurrency advocate helms data analytics firm and largest corporate Bitcoin holder, MicroStrategy, which recently took on a $205 million USD loan to purchase more bitcoin.
Forbes reports that earlier this week, the firm entered into an agreement with crypto-focused lender Silvergate Bank to use the cryptocurrency as collateral. The loan will be used to buy bitcoin as well as pay off loan expenses and for general corporate usage. The terms of the three-year loan required at least $410 million USD worth of bitcoin to be held in collateral.
In a statement, Saylor explains the benefit of the loan and states that it gives MicroStrategy an opportunity to grow and “further [its] position” using crypto. He adds, “Using the capital from the loan, we’ve effectively turned our bitcoin into productive collateral, which allows us to further execute against our business strategy.”
The company only began buying crypto in August 2020 and is now said to hold approximately 125,051 bitcoins, surmounting a value of $3.8 billion USD. Lately, MicroStrategy has taken several steps to purchase more bitcoin, including launching a $1 billion USD common stock offering and offering more than $1.7 billion USD in convertible senior notes to investors for more liquidity.
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