The market is not yet ready for bitcoin-backed bonds, so MicroStrategy tapped a loan to further increase its holdings in the first cryptocurrency. This was stated by CEO Michael Saylor in an interview with Bloomberg.
“I would like to see the day when bitcoin-backed bonds are sold as readily as mortgage-backed securities”, he said.
On March 29, the MicroStrategy unit received a $205 million loan from Silvergate Bank. According to Saylor, this was the optimal option compared with using DeFi or issuing traditional debt instruments.
“There is a lot of hype around El Salvador’s bitcoin bonds. But it’s a hybrid instrument that includes sovereign risk. This is not a ‘pure play’ with digital gold on the balance sheet; there is no direct dependence on its price dynamics,” the executive explained.
Saylor acknowledged that other corporations and municipalities might follow MicroStrategy’s example.
“New York could issue $2 billion in debt to buy bitcoin. Its yield is 50% or more, with financing costs at 2% or less,” he explained.
According to Bitcoin Treasuries, MicroStrategy owns 125,051 BTC worth $5.7 billion.
Earlier, its chief financial officer Phong Le stated that the company would continue buying digital gold, despite the situation in the cryptocurrency market.
Earlier, El Salvador postponed the issuance of Bitcoin bonds from March to May–June while awaiting more favorable conditions in the global financial markets.
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