Bitcoin bonds – is the financial market ready to accept them? MicroStrategy CEO Michael Saylor says no, not yet.
In his recent interview with Bloomberg, Saylor revealed that Bitcoin-backed bonds should remain a concept as the financial market is not ready to invest in them. He hopes that in the future these bonds will be sold like “mortgage-backed securities” but the world is far away from accepting them as an authentic asset at present.
According to Saylor, Bitcoin bonds for the financial market right now would be a huge risk. Saylor’s advice might be a response or warning to El Salvador who announced their plans to release “Volcano Bonds” worth 1 billion dollars of Bitcoin last year. However, the advocating president of El Salvador, Nayib Bukele, recently withheld those bonds due to the global financial crisis following the events in Ukraine.
The software development company’s CEO also revealed they took a Bitcoin loan worth $205M as collateral to expand their own Bitcoin-based subsidiary MSTR by buying more BTC. MicroStrategy currently owns 125,051 worth of BTC.
MacroStrategy, a subsidiary of @MicroStrategy, has closed a $205 million bitcoin-collateralized loan with Silvergate Bank to purchase #bitcoin. $MSTR $SIhttps://t.co/QYw2ZgeE3U
— Michael Saylor⚡️ (@saylor) March 29, 2022
MicroStrategy is set on a mission to buy more digital assets. Saylor is against the idea of companies using cryptocurrency as their finances. Instead of focusing on Bitcoin-backed bonds, MicroStrategy’s CEO believes Bitcoin-collateralized loans are less risky.
With the success of the company’s market value, Saylor gives a solution to increasing global debt and inflation. This solution is opposite to El Salvador’s strategy to sell Bitcoin-backed bonds. He advises buying Bitcoin.
When sovereign debt is no longer a store of value, the rational response is to replace bonds with #bitcoin. https://t.co/6hAjrQPxPi
— Michael Saylor⚡️ (@saylor) March 30, 2022
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