MacroStrategy Purchases more Bitcoin after Taking $205 Million Loan

MicroStrategy is one of the tech companies that have been working towards becoming one of the largest Bitcoin reserves in the world. To this end, the company has already converted a sizeable portion of its capital into Bitcoin purchases. Last year, MicroStrategy proceeded to issue bonds with collecting funds for more Bitcoin purchases.

This week, the company has used a subsidiary to add $190 million of Bitcoin to its digital reserves. The company CEO Michael Saylor shared the news on his Twitter profile, adding the detail that the organization added 4,167 Bitcoins this year alone. The subsidiary that made the purchase is called MacroStrategy, which is a dedicated subsidiary of MSTR.

The platform that MS chose for purchasing massive amounts of Bitcoin reveals that the transfer was completed between February and April. According to the update shared by MSTR CEO Saylor, the company now holds 129,218 Bitcoins at an average price of $30,700 per unit. It is also worth noting that recently MacroStrategy applied for a big loan that has been dedicated to purchasing more Bitcoins.

Official records indicate that Silvergate Bank approved a loan worth $205 million to MacroStrategy as a collateralized lending option. With the latest purchases, MicroStrategy now holds 111% of its total market capitalization in the form of Bitcoins. Globally, MSTR BTC reserves make up 0.615% of the entire supply.

Bitcoin Bond Issuance

Commenting on the matter of Bitcoin bonds, Saylor changed his stance on the matter, claiming that the market is not ready for products like Bitcoin bonds. He also claimed that the world is still in economic transition that will be suitable in the future for Bitcoin bonds, just like mortgage securities. He also added that management has leaned in favor of traditional bank loans.

On the matter of El Salvador Bitcoin bonds, Saylor claimed that the South American state could treat it as a government-backed public debt rather than Bitcoin national reserves. He further explained that the Salvadorian Bitcoin bond would carry a personalized credit risk that will operate independently of the Open market prices.