Saylor getting a Deal!

Microstrategy has been relatively quiet during Q2 and Q3 of 2022. Over a period of 6 months, they “only” bought 781 Bitcoin for a total of $16 million. Activity picked up in Q4 2022.
The current quarter is almost over and Saylor managed to get two deals done:

• Buy another batch of Bitcoin for $150 million
• Get a great deal for repaying a loan from Silvergate early

Silvergate Deal

Per Form 8-K disclosure, the company managed to take advantage of Silvergate’s current troubles and repay a loan early while also securing a discount of $44 million on a loan of $205 million.

Quotes from the filing:

Silvergate issued a $205.0 million term loan (the “Loan”) to MacroStrategy. The Loan had a scheduled maturity date of March 23, 2025, and bore interest at a floating rate equal to the SOFR 30 Day Average as published by the Federal Reserve Bank of New York’s website plus 3.70%, with a floor of 3.75%. As of March 24, 2023, the floating rate equaled 8.27%.

and

On March 24, 2023, MacroStrategy and Silvergate entered into a Prepayment, Waiver and Payoff to Credit and Security Agreement, pursuant to which MacroStrategy voluntarily prepaid Silvergate approximately $161.0 million (the “Payoff Amount”), in full repayment, satisfaction, and discharge of the Loan and all other obligations under the Credit Agreement.

Bitcoin Ownership

Starting August 2020, Microstrategy bought in aggregate 139 thousand BTC at a total cost of $4,2 billion for an average price of $30’065.

With BTC at $27’000 today, this amounts to a market value of $3,8 billion and an overall paper loss of $426 million.

The situation has improved dramatically compared to the the last report from the 29th of June 2022.

Sources:

• Source Microstrategy financials:
  Microstrategy investor relations page for 8-K, 10-K and 10-Q reports.

• Source Microstrategy stock market data: finance.yahoo.com

• Source shares outstanding:
  ycharts.com

• Source BTC price:
  coingecko.com

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