MicroStrategy may diversify its bitcoin asset revenues by offering loans in the leading cryptocurrency, according to a hypothesis proposed by Benchmark, reports The Block.
Experts believe such an initiative could offset interest payments on debts and bolster its assets without concerns over excessive leverage or shareholder dilution.
Analysts recalled MicroStrategy’s raising of $1.01 billion through the issuance of convertible bonds, part of which was used to purchase 7420 BTC for $458.2 million (at approximately $61,750 per coin).
Benchmark noted that the corporation’s founder, Michael Saylor, had considered bitcoin lending for profit but deemed it unfeasible due to a lack of reliable counterparties.
Specialists highlighted The Bank of New York Mellon’s ambition to enter the custodial services market for spot crypto ETFs.
If the SEC eases its stance not only towards institutions but also extends it to corporations, MicroStrategy could gain access to major institutional counterparties for lending with greater confidence in loan repayment, analysts added.
Benchmark reaffirmed a “buy” rating and a price target for the corporation’s shares at $215. Since the beginning of the year, the securities have risen by 143.6%, reaching $153.88.
In August, Saylor revealed that he owns over $1 billion in digital gold.
In July, ForkLog reported on Cantor Fitzgerald’s plans to launch a fiat lending business backed by bitcoin.