CEO of MicroStrategy Says The Market Isn’t Ready for Bitcoin-Backed Bonds

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MicroStrategy
MicroStrategy

CEO of MicroStrategy Michael Saylor believes that traditional financial markets aren’t ready for Bitcoin-backed bonds yet. 

In an interview with Bloomberg, Saylor said that he wants to see Bitcoin-backed bonds sold like mortgage-backed securities but he warned that “the market is not quite ready for that right now. The next best idea was a term loan from a major bank.”

“MacroStrategy, a subsidiary of @MicroStrategy, has closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase,” said the company in a Tweet. 

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The comments came shortly after Microstrategy’s Bitcoin-specific subsidiary MacroStrategy announced a $205 million BTC-ccollateralized loan to buy more Bitcoin.

This is the first time MicroStrategy borrowed against its own Bitcoin reserves. The company holdings are currently valued around $6 billion, but the financial institutions is planning on buying more.

Saylor’s comments followed El Salvador’s decision to postpone the issuance of the $1 billion BTC-backed “Volcano Bond” on March 23. The Finance Minister of the country Alejandro Zelaya said that the delay in the decision is due to financial uncertainty in the international market, amid the Russian-Ukrainian war.