Terra buys $1,3 billion Bitcoin, MicroStrategy secures $205 million loan and Dubai School accepts crypto
MicroStrategy borrows $205 million loan to buy more Bitcoin
MicroStrategy’s arm MacroStrategy has received a $205 million loan from Silvergate Bank to buy more Bitcoin (BTC). The business intelligence firm provided a portion of its Bitcoin reserves as collateral to secure the loan.
Silvergate Bank, a San Diego-based crypto-focused bank serviced the loan through the Silvergate Exchange Network (SEN), which provides loans collateralized by Bitcoin.
“The SEN Leverage loan gives us an opportunity to further our position as the leading public company investor in Bitcoin. Using the capital from the loan, we’ve effectively turned our Bitcoin into productive collateral, which allows us to further execute against our business strategy.”
School in Dubai starts accepting Bitcoin and Ethereum
A school in Dubai is reportedly now accepting payments in both Bitcoin and Ethereum for tuition fees.
The move comes as Dubai is seemingly becoming a cryptocurrency hub and shortly after it became the home of multiple digital asset companies. According to Zawya, Dubai’s Citizens School is opening in September accepting both cryptocurrencies as a payment method.
The news outlet’s report details Citizens School may be the first such entity in the Middle East to accept cryptocurrency payments. The funds it receives in crypto will, however, be immediately converted into Dirhams by a local firm.
$1.3 billion Bitcoin purchase for stablecoin Terra Luna
Terra has become a persistent buyer of bitcoin. Do Kwon, the CEO of LFG and Terraform Labs, confirmed that the company had snapped up over $1 billion in BTC since the end of January.
At publication time, the bitcoin address of the Luna Foundation Guard holds 27,784 BTC — equivalent to $1.32 billion at the prevailing market prices.
Terra utilizes a dual token mechanism to keep its algorithmic stablecoin UST pegged to the US dollar. This means Terra users must burn $1 worth of LUNA for every new UST minted. Without enough collateral backing, the stablecoin risks crashing. This is why LFG is accumulating BTC in its reserve fund.
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