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MicroStrategy Denies Having Assets Under Silvergate Capital Custody

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It is reported that MicroStrategy (MSTR), a commercial software company, said on Thursday that it had no assets under the custody of Silvergate Capital (SI) an…

MicroStrategy Denies Having Assets Under Silvergate Capital Custody

It is reported that MicroStrategy (MSTR), a commercial software company, said on Thursday that it had no assets under the custody of Silvergate Capital (SI) and had no other financial connection with the bank except for the commitment to repay the loan in 2025. MicroStrategy said in a tweet that “the market is worried about the financial situation of Silvergate”, referring to the concern that the bank focused on cryptocurrency may not continue to “continue to operate” after having to postpone its 10-K application.

MicroStrategy: No assets are hosted by Silvergate

Interpretation of the news:


MicroStrategy, a reputable commercial software company, made a statement on Thursday denying reports of having any financial ties or assets under the custody of Silvergate Capital, a cryptocurrency-centered financial institution. According to MicroStrategy’s tweet, the market has been concerned about the financial situation of Silvergate since the bank had to postpone the submission of its 10-K application.

The message is a response to the growing apprehension of investors regarding the operational continuity of Silvergate. The postponement of the 10-K application filing could be seen as a red flag for stakeholders. A 10-K application is an annual report that publicly traded companies must submit to the Securities and Exchange Commission (SEC) detailing their business operations, financial performance, and management discussions. A delay in submission may raise suspicions about the company’s continued growth and profitability.

Thus, the concerns of investors regarding the financial status of Silvergate and its effects on MicroStrategy’s operations are understandable. However, the latter clarified that the only financial engagement they had with the former was their commitment to repay the loan in 2025. The tweet indicates that there are no other financial connections or assets under Silvergate’s custody, indicating that the loan is the only transaction between the two companies.

Moreover, the statement highlights the association of Silvergate with cryptocurrency, expressing microStrategy’s confidence that the situation of the bank will not affect its cryptocurrency business. It is possible that MicroStrategy, being a software company that deals with massive data, sees the potential of cryptocurrency and how Silvergate plays an essential role in the said industry. By disproving any significant financial ties to Silvergate, MicroStrategy intends to assure their shareholders that the company’s performance will not be directly impacted by any adverse effects on Silvergate.

In conclusion, the message suggests that MicroStrategy is taking proactive measures to appease investors’ apprehensions, especially in the decentralized world of cryptocurrency. Despite the growing concerns surrounding Silvergate’s financial situation, MicroStrategy aims to maintain its profitability and growth trajectory by shedding light on its limited financial connection with the cryptocurrency-centered bank.

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