Silvergate Capital issues $205M Bitcoin-backed loan to MicroStrategy subsidiary

Cryptocurrency bank Silvergate Capital (NYSE:SI) on Tuesday has issued a $205M bitcoin-backed loan under its Silvergate Exchange Network Leverage program to MacroStrategy, a subsidiary of MicroStrategy (NASDAQ:MSTR). Launched in 2020, SEN Leverage provides institutional-grade access to capital through U.S. dollar loans collateralized by bitcoin. The interest-only term loan is secured by certain Bitcoin (BTC-USD) held in MacroStrategy’s collateral account with a custodian mutually authorized by Silvergate (SI) and MacroStrategy. Under the terms of the agreement, MacroStrategy will use the loan proceeds to purchase BTC; pay fees, interest, and expenses related to the loan transaction, or for general corporate purposes, the company said. “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,” said Michael Saylor, chairman and CEO of MicroStrategy. Meanwhile, bitcoin (BTC-USD +1.5%) is flirting with $48K, above both short- and long-term moving averages. And shares of