Michael Saylor: Financial markets are ‘not quite ready' for Bitcoin bonds
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Loading... - Maire Dunne
- 01 Apr 2022
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MicroStrategy CEO and Bitcoin (BTC) permabull Michael Saylor believes that traditional financial markets aren’t quite ready for Bitcoin-backed bonds.
Saylor told Bloomberg on Tuesday that he’d love to see the day come where Bitcoin-backed bonds are sold like mortgage-backed securities but warned that “the market is not quite ready for that right now. The next best idea was a term loan from a major bank.
The remarks come two days after MicroStrategy’s Bitcoin-specific subsidiary MacroStrategy announced that it had taken out a $205 million BTC-collateralized loan to purchase even more Bitcoin. This loan was unique, as it marked MicroStrategy’s first time borrowing against its own Bitcoin reserves — which are currently valued at approximately $6 billion — to buy more of the cryptocurrency.
Saylor’s comments also follow El Salvador’s recent decision to postpone the issuance of its $1 billion BTC-backed “Volcano Bond” on March 23. According to El Salvador’s Finance Minister Alejandro Zelaya, the decision to delay the bond was due to general financial uncertainty in the global market driven by conflict in Ukraine.
In a potential warning to El Salvador, Saylor said that the country’s Volcano Bond was somewhat riskier than his company’s Bitcoin-collateralized loan. Read More...
