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MicroStrategy Unit Gets $205M Collateral Loan From Silvergate to Buy Bitcoin
The term loan can also be used for general corporate purposes.
By Brandy Betz
Updated May 11, 2023, 7:18 p.m. Published Mar 29, 2022, 1:31 p.m.
MacroStrategy, a subsidiary of MicroStrategy (MSTR), has received a $205 million term loan from crypto payments provider Silvergate Bank (SI).
- The loan was given through the Silvergate Exchange Network (SEN) Leverage program, which issues U.S. dollar loans using bitcoin as collateral. The loan was collateralized with about $820 million worth of bitcoin, according to a regulatory filing.
- Shares of MicroStrategy were flat during premarket trading.
- MicroStrategy, a software company, has become known more for its embrace of bitcoin. In the fourth quarter, the company took a nearly $150 million impairment charge on its bitcoin holdings because of the cryptocurrency's price drop.
- The interest-only loan is secured by a certain portion of bitcoin held in MacroStrategy’s collateral account, which has a custodian agreed upon by both parties.
- MacroStrategy can use the loan to purchase bitcoin or pay interest and fees related to the loan or for MacroStrategy’s or MicroStrategy’s general corporate needs.
- Launched in 2020, Silvergate’s SEN Leverage program had $570.5 million in commitments at the end of last year, according to the press release.
- “The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in bitcoin,” MicroStrategy CEO Michael Saylor said in the press release. “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.”
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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