The market is not yet ready for bitcoin-backed bonds, so MicroStrategy has raised a loan to further increase positions in the first cryptocurrency, as stated in an interview with Bloomberg by the company CEO Michael Saylor. He has said:
“I would like to see the day when Bitcoin-backed bonds will be sold in the same way like mortgage-backed securities.”
On March 29, MicroStrategy received a $205 million loan from Silvergate Bank. Saylor says that this is a better option than using DeFi or issuing traditional debt instruments. He has explained:
“There is a lot of buzz about El Salvador’s Bitcoin bond right now. But this is a hybrid instrument that includes sovereign risk. This is not a ‘pure game’ with digital gold on the balance sheet, there is no direct dependence on its price dynamics.”
He has added:
“New York may issue $2 billion worth of debt to buy Bitcoin. It has a yield of 50%+ and a funding cost of 2% or less.”
According to Bitcoin Treasuries, MicroStrategy currently owns 125,051 BTC worth $5,7 billion.
