Michael Saylor, CEO of MicroStrategy, believes that the financial market is not yet ready for a Bitcoin-backed bond.
At the same time, El Salvador postponed the launch of its Bitcoin-backed bonds, which we discussed in previous articles on Arab Bitcoin.
Michael Saylor: Now is not the time for Bitcoin-backed bonds
In a recent interview with Bloomberg, the CEO of MicroStrategy believes that now is not the time to issue such a project (Bitcoin bonds).
Where he stated that:
I would like to see a day when people finally sell bitcoin-backed securities like mortgage-backed securities.
Currently the market is not quite ready for that.
The next best idea is to get a term loan from a major bank.
The CEO's comment comes as the country of El Salvador looks to launch a $1 billion bitcoin bond.
Speaking about a Bitcoin-backed volcanic bond in El Salvador, the head of MicroStrategy said:
The intended proceeds of $1 billion will be split in two, half of which will be devoted to bitcoin investment, and the remainder to be used to develop the much-talked about "Bitcoin City".
Earlier in March, the launch date was pushed back, with El Salvador's Finance Minister Alejandro Zelaya citing unfavorable market conditions as a reason for delaying the launch.
Michael Saylor: The $205 million loan was the best financing option
MicroStrategy's subsidiary MacroStrategy recently secured a $205 million loan from Silvergate Bank, a division of Silvergate Capital Corporation, to guarantee its bitcoin holdings.
As part of the agreement, MacroStrategy will use the loan to purchase bitcoin, pay interest fees, and cover expenses related to the loan.
Meanwhile, Saylor said getting the loan was the best decision for the company's shareholders.
The CEO of MicroStrategy said that several financial options such as issuing bitcoin-backed bonds, lending bitcoin, and making use of decentralized finance (DeFi) instruments were being considered.
For your information, Michael Saylor is one of the most prominent proponents of Bitcoin in the industry.
MicroStrategy, which Saylor heads as CEO, has been accumulating bitcoin since 2020 and is currently the largest bitcoin holder, with over 125,000 bitcoins in stock.
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