SI Silvergate Capital Corporation

ITEM 8.01 OTHER EVENTS.

In connection with the wind down of operations and voluntarily liquidation of Silvergate Bank (the "Bank"), a subsidiary of Silvergate Capital Corporation (the "Company"), the Bank agreed to the prepayment of a $205 million secured term loan (the "Term Loan") issued under the Bank's SEN Leverage program to MacroStrategy LLC (the "Borrower"), a subsidiary of MicroStrategy Incorporated (Nasdaq: MSTR). The Term Loan was issued pursuant to a Credit and Security Agreement, dated as of March 23, 2022 by and between the Borrower and the Bank (the “Credit Agreement”) and was collateralized by certain bitcoin owned by Borrower and a $5.0 million cash reserve account held by Borrower at the Bank. Pursuant to the terms of a Prepayment, Waiver and Payoff to Credit and Security Agreement, dated as of March 24, 2023, by and between Borrower and Bank, the Bank agreed to accept $161 million ("Payoff Amount") in full repayment, satisfaction, and discharge of the Term Loan and all other obligations under the Credit Agreement, and the other related loan documents. The Bank waived the prepayment charge due upon such prepayment pursuant to the Credit Agreement and upon receipt of the Payoff Amount, the Credit Agreement was terminated, and the Bank released its security interest in all of the Borrower's assets collateralizing the Term Loan, including the bitcoin that was serving as collateral.