Michael Saylor: Global Markets Are Not Ready To Welcome Bitcoin Bonds Yet!
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Answer Michael Saylor: Global Markets Are Not Ready To Welcome Bitcoin Bonds Yet!
Michael Saylor, CEO of MicroStrategy, believes that the financial market is not yet ready for a Bitcoin-backed bond.
At the same time, El Salvador postponed the launch of its Bitcoin-backed bonds, which we discussed in previous articles on Arab Bitcoin.
Michael Saylor: Now is not the time for Bitcoin-backed bonds
In a recent interview with him,BloombergThe CEO of “MicroStrategy” believes that now is not the time to issue such a project (Bitcoin bonds).
Where he stated that:
I would like to see a day when people finally sell bitcoin-backed securities like mortgage-backed securities.
Currently the market is not quite ready for that.Read:General Motors files for a patent for “blockchain maps”
The next best idea is to get a term loan from a major bank.
The CEO’s comment comes as the country of El Salvador looks to launch a $1 billion bitcoin bond.
Speaking about a Bitcoin-backed volcanic bond in El Salvador, the head of MicroStrategy said:
This is a hybrid sovereign debt instrument rather than a pure Bitcoin and treasury game.
This has its own credit risk and is completely unrelated to the risk of Bitcoin itself.
El Salvador has been preparing to launch a 10-year bitcoin bond.
The intended proceeds of $1 billion will be split in two, half of which will be devoted to bitcoin investment, and the remainder to be used to develop the much-talked about “Bitcoin City”.
Earlier in March, the launch date was pushed back, with El Salvador’s Finance Minister Alejandro Zelaya citing unfavorable market conditions as a reason for delaying the launch.
Michael Saylor: The $205 million loan was the best financing option
MicroStrategy’s subsidiary MacroStrategy recently secured a $205 million loan from Silvergate Bank, a division of Silvergate Capital Corporation, to guarantee its bitcoin holdings.Read:CoinMarketCap promises: Binance cannot change our business model
As part of the agreement, MacroStrategy will use the loan to purchase bitcoin, pay interest fees, and cover expenses related to the loan.
Meanwhile, Saylor said getting the loan was the best decision for the company’s shareholders.Read:The crypto community is suggesting that Ripple burn some XRP coins to increase the value of the coin
The CEO of MicroStrategy said that several financial options such as issuing bitcoin-backed bonds, lending bitcoin, and making use of decentralized finance (DeFi) instruments were being considered.
For the record, Michael Saylor is one of the most prominent proponents of Bitcoin in the industry.
MicroStrategy, which Saylor heads as CEO, has been accumulating bitcoin since 2020 and is currently the largest bitcoin holder, with more than 125,000 bitcoin in its stockpile.
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