MicroStrategy Buys an Additional 6,455 Bitcoin ($BTC), Pays off Silvergate Loan
Nasdaq-listed business intelligence firm MicroStrategy has bought an additional 6,455 Bitcoin ($BTC) at an average price of $23,238 per coin over the last five weeks, and has paid off the remaining principal of its $205 million loan from Silvergate Bank with BTC.
The loan was taken out last year and, as part of its satisfaction, the business intelligence firm received 34,619 BTC back that were held as collateral. The company’s newly added BTC cost it around $150 million and signals it’s still accumulating the flagship cryptocurrency.
The acquisition of more Bitcoin brings MicroStrategy’s total holdings up to 138,955 comes, purchased at an average price of $29,817 each, and worth approximately $3.88 billion at the time of writing.
On social media, MicroStrategy’s founder Michael Saylor detailed that the loan with Silvergate was repaid at a 22% discount, and that the firm’s BTC holdings were acquired for a total of $4.14 billion.
MicroStrategy has also revealed that it has raised $339.4 million through the sale of its shares this year, which was used to pay back the loan from Silvergate Bank. The company’s decision to use BTC as collateral for the loan was widely seen as a testament to its belief in the long-term potential of the digital asset.
As CryptoGlobe reported, a top cryptocurrency analyst that has gained a large following on social media after accurately calling in January 2018 bitcoin’s 84% decline throughout that year, from over $19,000 to a little over $3,000 in a year-long bear market, has suggested through two charts that there’s potential for Bitcoin to hit $150,000 by 2025.
Peter Brandt, who is one of the world’s most respected classical chartists, has shared charts on the microblogging platform Twitter with his nearly 700,000 followers that suggested $BTC is making an inverse head and shoulders pattern, which could push $BTC to $30,000 by the second quarter of this year.
An inverse head and shoulders pattern is the opposite of the standard head and shoulders pattern. It is used to predict the reversal of downtrends. The pattern is identified when the price of a security reaches a low point, rises, falls again below the previous low point, then rises again, and finally falls a third time but not as low as the second trough.
After the third trough, the price moves upward towards the resistance level at the top of the previous troughs, according to Investopedia.
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