MSTR - MicroStrategy pays off Silvergate loan adds more bitcoin sells more stock

2023-03-27 08:32:25 ET

Microstrategy ( NASDAQ: MSTR ) on Monday said it paid off a $205M loan it had with Silvergate Capital ( SI ) two years early, releasing 34,619 bitcoins ( BTC-USD ) held as collateral for the loan. The software company also announced it acquired more than 6,000 bitcoin since mid-February and raised more than $300M from the sale of its shares.

On March 24, MSTR, headed by bitcoin fan Michael Saylor, voluntarily paid ~$161.0M to repay the loan and all other obligations with Silvergate ( SI ) under their credit agreement. The loan was scheduled to mature on March 23, 2025 and bore interest at a floating rate equal to the SOFR 30-day average plus 3.70%, with a floor of 3.75%. As of March 24, 2023, the floating rate qualed 8.27%.

Under the company's at-the-market share sales agreement, MicroStrategy ( MSTR ) sold a total of almost 1.35M shares for net proceeds of ~$339.4M. Some the the net proceeds from the share sale plus $5.0M of cash reserve held by Silvergate ( SI ) were used to pay off the loan.

MSTR shares edged up 0.1% in Monday premarket trading.

The company also said it acquired 6,455 bitcoins ( BTC-USD ) for ~$150M ini cash, at an average price of $23,238 per bitcoin, between Feb. 16, 2023 and March 23, 2023.

As of March 23, MicroStrategy ( MSTR ) held a total of 138,955 bitcoins, which were acquired at an aggregate purchase price of ~$4.14B and an average purchase price of ~$29,817 per bitcoin, including fees and expenses.

Earlier, Silvergate ( SI ) agreed to the prepayment of the secured term loan issued under its SEN Leverage program. Recall that earlier this month Silvergate Capital ( SI ) announced plans to wind down operations and liquidate its Silvergate Bank subsidiary.

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