MicroStrategy had caused a splash last year when it announced that it was using Bitcoin as collateral for a loan — enabling the business intelligence firm to buy more BTC.
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MicroStrategy has revealed that it has ended a loan agreement with Silvergate Bank — repaying $161 million in order to be reunited with 34,619 BTC.
The news, confirmed in a filing to the SEC, comes weeks after the financial institution announced that it was voluntarily winding down operations.
In the days that followed, Silicon Valley Bank and Signature Bank were also shuttered by the federal government.
MicroStrategy had caused a splash last year when it announced that it was using Bitcoin as collateral for a loan — enabling the business intelligence firm to buy more BTC.
But when Bitcoin's price endured a sharp fall in 2022, there were questions about whether MicroStrategy would face margin calls.
The company — helmed by executive chairman Michael Saylor — had insisted that there was nothing to worry about, despite its Bitcoin warchest being worth far less than its cost price.
In other developments, MicroStrategy has also confirmed that it's bought 6,455 BTC for $150 million — an average price of $23,238 per coin.
The investments took place between February 16 and March 23 — and indicate that the publicly listed company remains determined to beef up its Bitcoin reserves.
At the current market rate of $27,000, this means MicroStrategy has already made a paper profit of $24.2 million.
But at this point, it's worth zooming out and looking at the wider picture.
Since August 2020, MicroStrategy has amassed a whopping 138,955 BTC — spending $4.17 billion.
But dramatic declines in the value of Bitcoin over the past 16 months means it's currently worth $3.77 billion, leaving the company about $330 million in the red.
If Bitcoin manages to break through $30,000, MicroStrategy will be on the cusp of returning to break even.
Achieving this might be easier said than done. While BTC has performed strongly since the start of this year — accelerating during this month's banking crisis — cracking $29,000 has proven difficult.
Saylor remains as bullish as ever — as his Twitter account shows.
On Saturday, he tweeted a chart that showed how Bitcoin has performed since August 2020, and how this compares with other major asset classes.
While the world's biggest cryptocurrency is up 131%, the S&P 500 has only delivered growth of 18% over the same timeframe. The tech-heavy Nasdaq has appreciated by 8%.
Gold is down 2%, bonds have plunged 16%, and silver is also nursing a 19% loss.
Addressing the banking crisis in the middle of March, Saylor added:
"#Bitcoin is a bank that can't lend out, invest, gamble, dilute, debase, freeze, or seize your assets. It works all the time, everywhere in the world, and is unstoppable."
MicroStrategy's stock price is often seen as a barometer for Wall Street sentiment on the crypto industry — alongside Coinbase.
It's surged by 70% so far this year — slightly better than Bitcoin's surge of 63%.
But compared with where it was two years ago, MicroStrategy's stock is down 70%.
