MicroStrategy, a business intelligence firm, has acquired 6455 BTC for around $150 million, according to the firm’s founder and CEO, Michael Saylor. The BTC was purchased at an average price of $23,238 per coin, approximately 16.89% less than BTC’s current market price. MicroStrategy has also announced that it has paid its $205 million BTC-collateralized loan to Silvergate at a 22% discount. The firm now holds 138,955 BTC, valued at $4.14 billion, with an average cost of each BTC on its total holdings around $29,817.
MicroStrategy Repays BTC-Collateralized Loan
According to Saylor’s tweet, MicroStrategy engaged in a Prepayment, Waiver, and Payoff to Credit and Security Agreement with Silvergate on March 24, 2023. MicroStrategy also voluntarily paid Silvergate $161.0 million, fulfilling the Loan and all other Credit Agreement obligations. The move indicates MicroStrategy’s confidence in Bitcoin, as well as the company’s belief that it can generate returns that are greater than the cost of debt.
Also Read: FTX Suing Voyager Digital for $445.8M in Loan Repayments
Bitcoin (BTC) Price Analysis
MicroStrategy’s purchase of 6455 BTC for $150 million has raised questions about whether it will help Bitcoin rebound from its current slump. BTC has been hovering below the $28k mark, with resistance at $28,263 and support at $27,119. The 4-hour chart pattern suggests that BTC may move towards consolidation. However, a break away from the symmetrical triangle may invite more volatility for the asset.
BTC is still down by a significant 59.48% from its all-time high of $69,044, which it attained in November 2021. If bulls manage to take control, BTC may break its current resistance and face fresh resistance at around $30k, with $28k forming the new support. At present, Bitcoin (BTC) is trading at $27,960, up by 0.4% in the last 24 hours.
