Bitcoin bullish firm Microstrategy confirmed that the company will not face any financial loss or effect because of the bad financial position of Silvergate Bank.
MicroStrategy is a business & software intelligence firm. This company is publicly listed on the Nasdaq exchange. Since Q3 2020, Microstrategy has been buying Bitcoin to add to the company’s balance sheet under the leadership of Michael Saylor. In 2022, Saylor stepped down from the company’s CEO role to focus on Bitcoin-related other initiatives under the company’s available resources.
On 3 March 2023, Microstrategy announced via its official Twitter account that Microstrategy has a loan from Silvergate Bank and the due date to pay back that loan will come in Q1 2025. In short, till the next 2 years, Microstrategy is free from any kind of pressure to return funds to this Bank.
Nasdaq-listed business intelligence company also confirmed that there are no company’s BTC funds under Silvergate custody & also no other financial relationship.
Initially in March 2022, Macrostrategy, a subsidiary of Microstrategy, secured a $205 Million loan from Silvergate Bank on behalf of BTC as a collateral fund. Microstrategy confirmed that the company will use that loan fund to purchase Bitcoins & other corporate works.
At that time Microstrategy confirmed:
“The interest-only term loan is secured by certain bitcoin held in MacroStrategy’s collateral account with a custodian mutually authorized by Silvergate and MacroStrategy. Under the terms of the agreement.”
The current situation is really very bad for Silvergate company because, in the past couple of days, more than 8 Crypto companies announced the termination of their partnership with Silvergate Bank.