The $205 million loan is backed by $820 million in bitcoin.

For the first time, MicroStrategy Inc., the Michael Saylor-controlled software firm that has made bitcoin a core of its corporate strategy, is borrowing against its digital assets to acquire more cryptocurrencies.

MicroStrategy owns about $2.5 billion worth of bitcoin.

Saylor, the founder and CEO of MicroStrategy, has been a leading proponent of using cryptocurrency in corporate treasuries rather than cash.

Saylor used the US Federal Reserve’s loosening policy to encourage him to get rid of cash, and the corporation began buying bitcoin for its balance sheet in August 2020.

The transaction is being carried out through the Silvergate Exchange Network Leverage program, which was introduced in 2020 and gives access to cash through dollar-denominated bitcoin-backed loans.

Since its foray into crypto, MicroStrategy has returned to the financial markets on many occasions, selling $500 million in junk bonds and entering the convertible debt market. Last year, the business also filed a proposal to sell $1 billion in common shares for general purposes, including the purchase of more bitcoin.