Patrick2Linton wrote: When the price of bitcoin increases, so will the value of the loans. Gracias. Grinnnn.
Loans payable -- cryptocurrency
Bitcoin Well confirms that in March and May, 2023, the company was loaned a total of 60 additional bitcoins, valued at $2,252,300, from certain arm's-length parties, which are unsecured and incur interest at an annual rate of 10.0 per cent per annum, calculated based on the value of the underlying cryptocurrency at the time the loan was originated. In addition, during the nine months ended Sept. 30, 2023, all of the cryptocurrency loans of the company were amended to extend the terms of each loan and amend the interest rate applicable. At Sept. 30, 2023, the company's cryptocurrency loans consisted of 230 bitcoins and 100 ethereum with a fair value of $8,682,447. The cryptocurrency loans now only become due after 12 months of a written notice request received from the holder, are unsecured, and bear interest at fixed rates ranging from 6.0 per cent to 10.0 per cent per annum or at a variable rate equal to bank prime plus 5 per cent per annum.
Pursuant to amendment agreements entered into on Sept. 1, 2023, the company also agreed to prepay certain interest owing on the cryptocurrency loans. For additional details, please see the company's press release dated Sept. 1, 2023, and the company's financial statements for the nine months ended Sept. 30, 2023.