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Michael Saylor and Microstrategy Secure $205 Million Bitcoin Collateralized Loan

Today, Michael Saylor announced that Microstrategy had secured a loan through Silvergate bank for $205 Million, collateralized by bitcoin, to buy more bitcoin. Saylor continues his incredibly high conviction bet to stack more and more bitcoin, and in doing so he has managed to get an FDIC insured bank to issue him a loan with bitcoin as collateral. This signifies another step in Bitcoin's journey to becoming a pristine reserve asset.

Despite this moment, a note of caution to other investors...Bitcoin remains volatile and many banks require collateral to equal a certain percentage of the loan value, if the Bitcoin price drops significantly, this can lead to liquidation of your assets by the bank unless you offer more collateral. Now this isn't an issue for Saylor as he has plenty of bitcoin to spare, but it's important for the average bitcoiner to understand. As Bitcoin evolves into a world reserve asset, you want to make sure you don't lose your BTC to impulsive trades.


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