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MicroStrategy requests a $204,000,000 loan to purchase BTC

MicroStrategy

TL;DR Breakdown

• Software research company returns to invest in cryptos
• MicroStrategy could boost the Bitcoin price to over $50,000

MicroStrategy has just announced it is ready to take a loan to buy Bitcoin. According to reports, the company led by Saylor Michael will use the crypto funds as a clause for its clientele. Crypto fans believe that the number one crypto on the market could reach a value of $50000 in the next few days.

The company has been involved with cryptocurrencies for some time now, being a key player in the market. On this occasion, MicroStrategy invested around $205 M to purchase the token, drastically increasing its stored crypto funds.

MicroStrategy takes a loan to buy Bitcoin

MicroStrategy

MicroStrategy, one of the most dominant American software research companies in the crypto market, has agreed to invest in a new BTC fund with its subsidiary company. According to reports, the Virginia-based agency requested a loan from Silvergate Bank for around $205M to purchase the tokens.

In the agreement between Saylor’s company and the Bank focused on cryptos, the loan would be subject to 3 years. The company will use about $820,000,000 in BTC, corresponding to 12 percent of the funds stored within the technology company. The deal shows a clause of $410,000,000 in BTC if the base fund remains at $200 million.

According to the opinions of Saylor, the MicroStrategy owner, this financing will allow the company to further its goals. But Saylor acknowledges that the research agency would be number one in crypto investments, specifically Bitcoin.

Saylor Michael’s Crypto Investments

Saylor Michael is proud to create and manage one of the largest software research companies in the United States and be a crypto-investments promoter. MicroStrategy kicked off its Bitcoin investments in 2020 when it bought around 125,000 tokens valued at around $3 billion.

That same crypto investment by Saylor in 2020 saw its value rise in 2021 when Bitcoin hit its all-time high of nearly $70,000. However, in previous months to the current date, the token could not recover from a downward trend that caused it to lose almost 50 percent of its value.

Due to these crypto investments, the company has suffered 9 percent losses reported in 2020, and by 2021 its shares fell by 5 percent.

However, Microstrategy continues with its ideals that BTC and other cryptocurrencies have a good future, which is why its investments are favorable. After the investment of the American company, Bitcoin raised its price by 10 percent, trading at $47,000.

Carisbel Guaramato

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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