Corporations invested more than $6 billion in crypto industry in the last 10 months DeFi-platform Velodrome accuses crypto sleuth of stealing $350k S&P Global dropped Coinbase rating to a speculative level BitGo will seek $100 million for Galaxy Digital refusal to acquire crypto platform Brazilian crypto exchange blocked customer accounts and fired staff Celsius Network’s debts is more his assets for $2,8 billion Monero underwent a successful hard fork First acquisition agreement crypto project for $1,2 billion terminated due financial statements OpenSea allowed reselling stolen NFTs

MacroStrategy borrowed $205 million to buy bitcoins

MacroStrategy borrowed $205 million to buy bitcoins

A subsidiary of the largest bitcoin owner borrowed money to buy more bitcoins. The same cryptocurrency acted as collateral. 

According to Businesswire, MacroStrategy, a subsidiary of MicroStrategy, borrowed $205 million secured in bitcoin. The loan was issued by Silvergate Bank. The terms of the agreement state that the borrowed funds will be used to purchase the cryptocurrency.

“The loan gives us an opportunity to further our position as the leading public company investor in Bitcoin,” said MicroStrategy CEO Michael Saylor.

The purchase is likely to occur on the U.S. cryptocurrency exchange Coinbase. Today, MicroStrategy is the largest bitcoin holder among public companies. It owns 125,000 BTC, estimated to be worth nearly $6 billion.

Subscribe to our Telegram channel for the most relevant, interesting, and informative news from the crypto industry. 


Bitcoin (BTC)

Bitcoin is the oldest cryptocurrency on the market. Almost 13 years ago, the unknown mysterious creator Satoshi Nakamoto (nobody knows who hides under this pseudonym yet) released a bitcoin whitepaper, a newsletter describing the project. The first transaction blocks appeared in the namesake blockchain. Bitcoin was intended as an alternative to fiat currencies, digital money that exists independently of intermediaries such as banks and governments.

Bitcoin transactions are recorded in a decentralized distributed registry and are protected from outside modification thanks to blockchain technology and complete decentralization. The issuance is strictly limited to 21 million coins. The concept of inflation does not apply to Bitcoin. On the contrary, every year the bitcoin supply in the market will decrease, which means that the rate of this cryptocurrency will only grow. Earlier we reported that at the end of 2021, 90% of all bitcoins have been already mined. Bitcoin is mined ("extracted") according to the PoW (Proof-Of-Work) algorithm and requires a lot of electricity and computing power. That is why Bitcoin is often called "digital gold". 

Market dominance: 40%.

Capitalization: $830 billion, at the highs exceeded $1 trillion.

Advantages: has the greatest value and capitalization, limited issuance.

Disadvantages: energy-consuming mining, expensive mining equipment, high network fees, and slow transactions.

0
Is there an error in the article?
To report