U.S billionaire, Michael Saylor, borrows $205m to buy bitcoins

American billionaire, Michael Saylor, through MacroStrategy, which he founded, borrowed $205 million to purchase bitcoin, to boost its total holdings of the cryptoasset, as the cryptocurrency eyes the $50,000 mark in Q2 this year.

Saylor’s company obtained the loan from Silvergate Bank to go bullish on bitcoin, which is down -0.65% in the last 24 hours, trading at $46,963.20, after initial rebound above $48,000 on Monday.

MacroStrategy is the subsidiary of Microstrategy, a business intelligence company that offers business solutions and acquires bitcoin as a store of value. Ripples Nigeria had reported four months ago that Microstrategy holds 121,044 bitcoin worth $3.57 billion.

This loan will further open Saylor’s companies to BTC’s volatility, although, a blog statement on Tuesday, didn’t reveal the exact amount that will be invested into the cryptocurrency asset, but the loan is bitcoin-collateral backed.

Ripples Nigeria understands MacroStrategy used some of its existing BTC holdings as collateral to acquire the $205 million loan from Silvergate Bank, which is a subsidiary of Silvergate Capital Corporation.

Commenting on the loan, the lender said, “Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.”

Read also: Promoter acquires more Bitcoins, fails to impact price value

It was gathered that, “Under the terms of the agreement, MacroStrategy will use the loan proceeds (i) to purchase bitcoins, (ii) to pay fees, interest, and expenses related to the loan transaction, or (iii) for MacroStrategy’s or MicroStrategy’s general corporate purposes.”

In a Twitter post on Wednesday, Saylor stated that, “Bitcoin represents the great exodus of capital from analog assets in physical space to digital assets in cyberspace to escape circumstances that are both toxic and parasitic to the human condition.”

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