Bitcoin Stumbles Below $46,000 as MacroStrategy Secures BTC-Backed Loan

Updated:

MicroStrategy’s crypto subsidiary, MacroStrategy, has secured a $205 million Bitcoin (BTC) collateralized loan from Silvergate Bank through its SEN leverage program. Macrostrategy revealed that it would use the proceeds of the loan to purchase more Bitcoins.

Silvergate Bank, the banking subsidiary of Silvergate Capital Corporation, revealed last week that it had agreed to one of its largest loans in a Bitcoin-collateralized deal.

The terms of the loan mandated that MacroStrategy channels the funds into purchasing more BTC. It also noted that MacroStrategy would pay fees, interest, and expenses related to the loan transactions or fund some of the company’s corporate requirements.

Alan Lane, the CEO of Silvergate, noted: “We are thrilled to add MicroStrategy to our growing list of SEN Leverage borrowers. Their innovative approach to treasury management is an exceptional example of how institutions can utilize their bitcoin to support and grow their business.”

Established in 2020, SEN Leverage is a corporate-focused lender and boasts of distributing about $600 million through Bitcoin-collateralized US dollar loans.

Commenting on the development, MicroStrategy CEO Michael Saylor asserted that the loan will assist his company in furthering “our position as the leading public company investor in Bitcoin.”

MicroStrategy now holds almost $6 billion worth of BTC, making it the biggest institutional BTC holder.

Key Bitcoin Levels to Watch — April 5

Bitcoin has failed, once again, to reclaim the $47,000 barrier, as the benchmark cryptocurrency tumbled below the $46,000 line after retesting the resistance a few hours ago.

BTCUSD 2022 04 05 16 20 10.png
BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

This rejection could spell doom for the near-term price action in BTC, as it indicates that the
cryptocurrency could retest the $45,000 support soon. A retest of that support level should completely depressurize the trading sentiment around BTC and set it up for a stronger rebound to the $47,000 – $48,000 barrier.

Nonetheless, the prevailing trading sentiment remains bullish above $45,000, as bulls fight to hold the $45,650 pivot top.

Meanwhile, my resistance levels are at $46,000, $46,300, and $47,000, and my key support levels are at $45,650, $45,000, and $44,000.

Total Market Capitalization: $2.13 trillion

Bitcoin Market Capitalization: $871.6 billion

Bitcoin Dominance: 40.9%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.