Join the most important conversation in crypto and web3! Secure your place today
Business software company MicroStrategy (MSTR) said it has no assets on trust with Silvergate Capital (SI) and is not financially tied to the bank in any other way, other than a commitment to repay a loan in 2025, the company said Thursday.
“There are concerns in the market about Silvergate’s financial situation,” said MicroStrategy said in a tweet, citing fears the crypto-focused bank may not be able to continue as a “going concern” after having to delay its 10-K filing. “Our bitcoin (BTC) collateral is not held with Silvergate and we have no other financial relationship with Silvergate.”
The terms of a $205 million loan between MicroStrategy and Silvergate Bank, a subsidiary of Silvergate Capital, will also not change given the bank’s inability to publish its annual report in which it will report further losses.
MacroStrategy, the subsidiary of MicroStrategy that handles its bitcoin purchases and holdings, received a $205 million loan from Silvergate Bank through its Silvergate Exchange Network (SEN) Leverage program in March 2022. The loan matures in the first quarter of 2025 and that timing will not change, the company wrote in its tweet.
“We have a loan from Silvergate that doesn’t mature until the first quarter of 2025,” said MicroStrategy. “For anyone wondering, the loan wouldn’t be accelerated because of Silvergate’s insolvency or bankruptcy.”
Multiple crypto companies, including Coinbase, Paxos, Galaxy Digital, and Kraken, have ended their relationship with the bank after filing news on Wednesday.
Shares of Silvergate fell 57% on Thursday.
Read more: Silvergate shares fall more than 50% as crypto customers flee the beleaguered bank