Locked And Loaded: MicroStrategy Takes $200M Loan To Buy Bitcoin

BitcoinistPublished on 2022-03-30Last updated on 2022-03-30

Abstract

Software company MicroStrategy is read to buy the Bitcoin dip. According to a press release, the company took a $205...

Software company MicroStrategy is read to buy the Bitcoin dip. According to a press release, the company took a $205 million loan from Silvergate Bank, a financial solution provider for the crypto industry.
The company took the loan via MacroStrategy, a subsidiary created with the purpose of holding its parent company’s Bitcoin funds. As per the release, the $205 million loans were issued under the Silvergate Exchange Network (SEN) and its Leverage program and will mature on March 23, 2025.
The SEN was launched in 2020, the release clarified, to address the demand for BTC collateralized loans. The financial institution claims the program has seen great interest which suggests a growing demand for BTC-backed loans.
Michael Saylor, Chairman, and CEO at MicroStrategy said:
The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin. 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.
As collateral, MacroStrategy used “certain Bitcoin” held by the subsidiary and secured with a custodian entity approved by both parties. In addition to buying BTC and increasing one of the largest private holdings by a company, MicroStrategy will use the loan to pay fees, interest, and related expenses.
Alan Lane, Chief Executive Officer at Silvergate said the following:
We’re thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers. Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.
MicroStrategy Rushes To Buy Bitcoin?
The price of BTC continues its upward trajectory as the news about MicroStrategy broke. The first crypto by market cap trades at $47,800 with a 16% profit in the past 7-days.

BTC with bullish momentum on the 4-hour chart. Source: BTCUSD Tradingview On social media, users discuss MicroStrategy’s potential impact on BTC’s price as some entities could attempt to front-run the software company. This could lead to extended bullish price action.
As mentioned, MicroStrategy is one of the largest BTC holders. Data from BitcoinTreasuries indicates the company holds over 125,000 BTC after investing around $2 billion.
The company has seen an increase in its competitors. Terra’s Luna Foundation Guard is set on becoming the biggest BTC holder and dethroning MicroStrategy.
The entity perceives BTC as pristine collateral and has already begun accumulating it. The objective is to protect the 19% APY offer by the Anchor Protocol, and hedge Terra’s native stablecoin against potential downside periods.
Do Kwon, co-founder at Terraform Labs, the company behind Terra’s development, has publicly challenged Saylor.
The Terra Protocol will be one of the largest holders of $BTC @saylor beware
— Do Kwon 🌕 (@stablekwon) March 2, 2022

Aave just crossed $1M in swap revenue, but HERE’s what you’re missing

Aave is expanding beyond its core lending and deposit services, establishing new revenue streams. The launch of its Global Dollar Hub and increased user activity have driven momentum. Notably, Aave DAO's swap revenue has surpassed $1 million since the launch of "Aave Will Win," with Ethereum being the primary contributor. This provides a new income source alongside traditional lending fees, and future features like leverage tools could further boost this growth. On-chain activity surged around the V4 Global Dollar Hub launch, briefly pushing the AAVE token price from ~$72 to ~$95 before settling near $87. Importantly, user growth remained strong despite the price pullback, with new addresses reaching 1,806 on June 30th—far above typical daily levels—and active addresses peaking at 3,144. Technical indicators like an RSI of 58 and a positive CMF suggest some underlying market strength remains.

ambcrypto3m ago

Aave just crossed $1M in swap revenue, but HERE’s what you’re missing

ambcrypto3m ago

Securitize Goes Public, The True 'First RWA Stock' Has Arrived

Securitize (SECZ) debuted on the NYSE on July 2nd and simultaneously launched a tokenized version of its shares on Solana and Avalanche. This move, representing ~$295M in tokenized shares, is a significant step for the RWA narrative, shifting focus from private assets to public equities. Critically, this is a case of "issuer-led" tokenization, where Securitize itself aims for the tokens to represent the same underlying common stock, not a synthetic derivative. This provides a more credible sample for other public companies to evaluate. The model is not about permissionless trading. Access is restricted to eligible U.S. investors via Securitize's regulated platform, with full KYC/AML. Compliance is built into the product, leveraging its status as a registered broker-dealer and transfer agent. The blockchains act as an efficient execution layer for recording ownership and enabling programmable transfers (e.g., using Solana's Token-2022 for compliance rules), but within a hybrid, regulated framework. Key challenges remain: proving meaningful secondary liquidity, ensuring seamless execution of shareholder rights (voting, dividends), and, most importantly, attracting adoption from non-crypto-native public companies. If successful, SECZ could evolve from a proof-of-concept into early evidence of structural change in capital markets infrastructure.

marsbit32m ago

Securitize Goes Public, The True 'First RWA Stock' Has Arrived

marsbit32m ago

To Buy Discounted ETH, How to Choose Between Bitmine and SharpLink?

"Buying Discounted ETH: SharpLink vs. Bitmine" analyzes two major treasury companies during a period of low ETH prices. Both hold significant ETH positions at a loss: SharpLink (with ~886.7K ETH at an average cost of ~$3,609, unrealized loss >$1.7B) and Bitmine (with 5.7M ETH, ~4.7% of supply, cost ~$3,400, loss >$11B). Despite similar ETH price declines and inclusion in Russell indices, their market valuations differ markedly. SharpLink trades at a ~21% discount to its ETH net asset value (NAV), while Bitmine's discount is only ~6%. The article compares them across key dimensions: financing ability (Bitmine raised $19.2B aggressively vs. SharpLink's smaller, steady raises), stock liquidity (Bitmine is significantly more liquid), and narrative execution (both support Ethlabs; SharpLink plans RWA tokenization, yet to materialize). For short-term trading on an ETH rebound, Bitmine offers better liquidity and a smaller NAV discount. For long-term holding, SharpLink's deeper discount and simpler capital structure (vs. Bitmine's perpetual preferred shares) may offer more upside if ETH recovers, though it carries higher liquidity risk. The choice depends on the investor's risk preference between SharpLink's visible price/ liquidity weakness and Bitmine's hidden risks in its capital structure and past valuation premiums.

marsbit49m ago

To Buy Discounted ETH, How to Choose Between Bitmine and SharpLink?

marsbit49m ago

Racing with Robinhood, Is Lighter Playing a Big Game?

"Lighter, a perpetual and spot exchange founded in 2022 by Vladimir Novakovski, is making strategic moves. After raising $68 million in November 2025 from investors like Founders Fund and Ribbit Capital, the project has recently updated its tokenomics and deepened its partnership with Robinhood. Key updates include a shift to permanent token burns from protocol revenue, with the first burn scheduled post-Q2 2026, and a change in staking rewards to be funded from the ecosystem reserve instead of protocol revenue. In July, Lighter was designated as Robinhood's official perpetual contracts partner and integrated directly into the Robinhood Wallet, gaining access to its vast user base. The partnership includes a $11 million LIT rewards program for users. Furthermore, Lighter plans to launch options trading in Q3 2025 and is reportedly working with the CFTC towards becoming a compliant decentralized exchange in the US. The LIT token has a fixed supply of 1 billion, with significant portions allocated to the team and investors subject to a 1-year cliff followed by a 3-year linear vesting schedule, starting from the Token Generation Event in December 2025."

Foresight News56m ago

Racing with Robinhood, Is Lighter Playing a Big Game?

Foresight News56m ago

Buying Discounted ETH, Which One to Choose: Bitmine or SharpLink?

The article compares two major ETH treasury companies, SharpLink and Bitmine, for investors seeking indirect ETH exposure via stocks during a bear market. Both hold significant ETH at similar cost bases (~$3,609 and ~$3,400 respectively) and face comparable percentage losses (>50%). Key differences lie in scale, valuation, and financing. Bitmine holds 5.7M ETH (4.7% of supply) with a ~$76B market cap and trades at only a ~6% discount to its net asset value (NAV). It has superior liquidity, aggressive financing (raising $19.2B in 11 months), and inclusion in the Russell 1000 index. However, its structure includes perpetual preferred stock with dividend costs, and past investors paid significant premiums, adding an extra layer of valuation risk. SharpLink holds ~887k ETH, has a ~$10.2B market cap, and trades at a deeper ~21% discount to NAV. Its financing has been slower, relying on smaller offerings. It promotes an "institutional narrative" with ties to Ethereum co-founder Joe Lubin and RWA/tokenization plans, though these remain unimplemented. Its liquidity is lower, but its simpler capital structure means current investors aren't paying for past overvaluation. In summary: For tactical trading in a downturn, Bitmine offers better liquidity and tighter NAV pricing. For potential long-term upside if ETH recovers, SharpLink's deeper discount offers more theoretical repair room, though it faces execution risks. The choice depends on whether one prioritizes trading efficiency and scale (Bitmine) or a potentially larger discount and simpler structure (SharpLink).

链捕手58m ago

Buying Discounted ETH, Which One to Choose: Bitmine or SharpLink?

链捕手58m ago

Trading

Spot