Silvergate Capital: Bank Provides $205 Million Loan to MacroStrategy Backed by Bitcoin – Form 8-K

Silvergate Bank Provides $205 Million Loan to MacroStrategy Backed by Bitcoin

Loan proceeds will be used by MacroStrategy, a subsidiary of MicroStrategy, to acquire additional bitcoins

LA JOLLA, Calif. and TYSONS CORNER, Va. – March 29, 2022 –(BUSINESS WIRE)– Silvergate Bank, a subsidiary of Silvergate Capital Corporation (NYSE: SI), the leading provider of innovative financial infrastructure solutions and services for growing digital currency industry, today announced a $205 million term loan under its Silvergate Exchange Network (SEN) leverage program to MacroStrategy LLC, a subsidiary of MicroStrategy Incorporated (Nasdaq: MSTR), which is the largest publicly traded independent business and analytics firm. intelligence company.

The interest-only term loan is collateralized by certain bitcoins held in MacroStrategy’s collateral account with a custodian mutually authorized by Silvergate and MacroStrategy. Under the terms of the agreement, MacroStrategy will use the loan proceeds (i) to purchase bitcoin, (ii) to pay fees, interest, and expenses related to the loan transaction, or (iii) for general business purposes. from MacroStrategy or MicroStrategy.

“We are delighted to add MicroStrategy to our growing list of SEN Leverage borrowers,” said Alan Lane, Managing Director of Silvergate. “Their innovative approach to cash management is an outstanding example of how institutions can use their bitcoin to support and grow their business.”

SEN Leverage, which launched in 2020, provides secure, institutional-grade access to capital through USD loans backed by bitcoins. As of December 31, 2021, SEN Leverage had reached approximately

$570.5 million in commitments, demonstrating the increased need for access to capital in the digital currency industry.

“The SEN Leverage Loan gives us the opportunity to strengthen our position as the leading public investor in bitcoin,” said Michael Saylor, president and CEO of MicroStrategy. “Using the capital from the loan, we have effectively turned our bitcoin into productive collateral, allowing us to continue to execute our business strategy.”

About Silvergate

Silvergate Capital Corporation (NYSE:SI) is the leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry. The company’s real-time payments platform, known as the Silvergate Exchange Network, is at the heart of its suite of customer-centric payment, lending and financing solutions serving a growing class from digital currency companies and investors around the world. Silvergate is enabling the rapid growth of digital currency markets and reshaping global commerce for a digital currency future.

About MicroStrategy Incorporated

MicroStrategy (Nasdaq: MSTR) is the largest independent, publicly traded business intelligence and analytics firm. The MicroStrategy Analytics Platform has been rated the best in business analytics and is used by many of the world’s most admired brands in the Fortune Global 500. We pursue two business strategies: (1) develop our business analytics software business to further our vision of Intelligence Everywhere and (2) acquire and hold bitcoin, which we believe to be a trusted store of value backed by a robust, public and open-source architecture, unrelated to sovereign monetary policy. For more information about MicroStrategy, visit www.microstrategy.com.

MicroStrategy is a registered trademark of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners.

CONTACTS:

For Silvergate:

Nathalie Short

[email protected]

For MicroStrategy: Investor Relations

ir.microstrategy.com