The market is not yet ready for Bitcoin-backed bonds, so MicroStrategy has raised a loan to further increase positions in the first cryptocurrency. About it in an interview Bloomberg said its CEO Michael Saylor.
“I would like to see the day when Bitcoin-backed bonds are traded like mortgage-backed securities”he said.
On March 29, MicroStrategy received a $205 million loan from Silvergate Bank. Saylor said this was a better option than using DeFi or issuing traditional debt instruments.
“There is a lot of hype right now about El Salvador’s bitcoin bond. 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”– explained the top manager.
Saylor conceded that other corporations, as well as municipalities, could follow MicroStrategy’s example.
“New York may issue $2 billion in debt to buy bitcoin. Its yield is 50%+, the cost of financing is 2% or less.”he explained.
According to the website Bitcoin TreasuriesMicroStrategy owns 125,051 BTC worth $5.7 billion.
Earlier, its CFO Fong Le said that the company will continue to buy digital gold, despite the situation in the cryptocurrency market.
Recall that El Salvador postponed the issue of bitcoin bonds from March to May-June in anticipation of more favorable conditions in the global financial market.
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The market is not yet ready for Bitcoin-backed bonds, so MicroStrategy has raised a loan to further increase positions in the first cryptocurrency. About it in an interview Bloomberg said its CEO Michael Saylor.
“I would like to see the day when Bitcoin-backed bonds are traded like mortgage-backed securities”he said.
On March 29, MicroStrategy received a $205 million loan from Silvergate Bank. Saylor said this was a better option than using DeFi or issuing traditional debt instruments.
“There is a lot of hype right now about El Salvador’s bitcoin bond. 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”– explained the top manager.
Saylor conceded that other corporations, as well as municipalities, could follow MicroStrategy’s example.
“New York may issue $2 billion in debt to buy bitcoin. Its yield is 50%+, the cost of financing is 2% or less.”he explained.
According to the website Bitcoin TreasuriesMicroStrategy owns 125,051 BTC worth $5.7 billion.
Earlier, its CFO Fong Le said that the company will continue to buy digital gold, despite the situation in the cryptocurrency market.
Recall that El Salvador postponed the issue of bitcoin bonds from March to May-June in anticipation of more favorable conditions in the global financial market.
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