A MicroStrategy unit received a US$205-million loan collateralised by its bitcoin holdings from Silvergate Bank that the enterprise software company plans to use to purchase more of the largest cryptocurrency.

The interest-only term loan to the MicroStrategy subsidiary matures in March 2025. The company owned about $2.5-billion in bitcoin at the end of December, according to corporate filings.

Michael Saylor, founder and chief executive of of MicroStrategy, has been the most vocal corporate advocate of holding the cryptocurrency instead of cash in corporate treasuries.

The transaction is being done through the Silvergate Exchange Network Leverage programme, launched in 2020, which provides access to capital through dollar loans collateralised by bitcoin. As of December, SEN had about $570.5-million in commitments, the companies said in a statement on Tuesday.