Home Altcoins News Nexo Ready to Give Bitcoin Collateralized Loan Worth $205 Million to MSTR

Nexo Ready to Give Bitcoin Collateralized Loan Worth $205 Million to MSTR

Nexo Ready to Give Bitcoin Collateralized Loan Worth $205 Million to MSTR

A bitcoin collateralized loan is proof that you need to never sell your Bitcoin. You can now borrow money against it.

Michael Saylor: “MacroStrategy, a subsidiary of Microstrategy, has closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase Bitcoin.”

This has created a FOMO.  While overleveraging in a bull market can work fine, however, having a lot of debt when the bear market comes is never a good idea. Time will tell if Saylor did the right move. However, it is good to have a strategy no matter what the market does.

Meanwhile NEXO: “Michael, why would you go to banks? We would’ve gladly helped you!”

“Today, it’s obvious why people would want an asset and a medium of exchange that is censorship-resistant, immutable, and does not require a trusted party. Bitcoin does exactly that. – @AntoniNexo”

Probably, MSTR being a public company, they are afraid to go to a crypto bank. By the way, to the question of whether can Nexo lend to Americans? It perhaps depends on the state..

Silvergate Bank is the leading bank for innovative businesses in fintech and cryptocurrency. Silvergate has been an early provider of services targeting the digital-currency market. Though it doesn’t own or trade cryptocurrency itself, it does supply financial infrastructure — such as deposit services, fund transfers, customer account controls and security— to help enable digital trading and transactions.

Silvergate has rigorous compliance requirements which are designed to keep both the bank and their client’s safe.

Also, Silvergate earns money on the stablecoin in three ways: It will earn a fee for creating every stablecoin it issues. It will also charge retailers a transaction fee. And lastly, it will earn money on interest off of the U.S. dollar reserves it will hold in support of the stablecoin.

Just to state, Silvergate know the world of digital currency very well and they know what they are dealing with. Silvergate Bank is FDIC-insured, meaning up to $250,000 is insured, even in the event of bank failure.

The top 10 owners of the Silvergate Capital Corp have stakes from individual stake holders to up to 5.64%, Mutual Fund holders 35.06%, and other institutional holding up to 26.51%

The Top 10 owners of Silvergate Capital corp are:  1. The Vanguard Group Inc., BlackRock Fund Advisors, S SgA Funds Management, Inc, Marshall Wave LLP, EJF Capital LLC, Morgan Stanley Smith Barney LLC, Lord Abbett & Co. LLC, Stephens Investment Management Groups, Geode Capital Management LLC, Capital Research and Management Company.

Noteworthy, Silvergate Capital Corporation is a holding company for Silvergate Bank (the Bank). The Bank is a provider of financial infrastructure solutions and services to participants in the nascent and expanding digital currency industry.

 

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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