“That’s a hybrid sovereign debt instrument as opposed to a pure Bitcoin-treasury play. That has its own credit risk and has nothing to do with the Bitcoin risk itself entirely.”
Saylor added that he is still extremely bullish on the long-term for Bitcoin-based bonds. The CEO argued that it’s a good idea that New York and other U.S. cities use Bitcoin as a debt instrument.
“New York can issue $2 billion of debt and buy $2 billion worth of Bitcoin — the Bitcoin is yielding 50% or more, the debt costs 2% or less,” he said.
Since its $250 million BTC investment in August 2020, MicroStrategy has been able to amass 125,051 BTC. At the current price of Bitcoin, the holdings are estimated around $5.5 billion. The financial institution has made a series of separate Bitcoin purchases in the last few years. Consequently, the company’s shares became closely correlated with the price of Bitcoin.
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