Bitcoin

Are Markets Not Quite Ready For Bitcoin Bonds? Michael Saylor Thinks So

04/01/2022
Bitcoin Ethereum News

Michael Saylor

  • The significant Bitcoin supporter Michael Saylor has expressed how the traditional markets are not yet ready for Bitcoin backed bonds. 
  • He is still extremely bullish on the long term potential for the bonds based on BTC. New York can use BTC as a debt instrument, he highlighted. 
  • He also commented on El Salvador’s decision to postpone the issuance of its $1 billion Bitcoin backed Volcano bond.

Michael Saylor, the CEO of MicroStrategy and a significant Bitcoin advocate, has recently expressed his opinions on how the traditional markets are not yet ready for Bitcoin backed bonds. 

He Remains Extremely Bullish About Bitcoin-based Bonds

In discussion with a news website, he noted that he would love to see that day when Bitcoin backed bonds are sold like Mortgage-backed securities. But he also warned that the market is not quite ready for that currently. And that the next best idea was a term loan from a major bank. 

This comes following the news of MicroStrategy’s (MSTR) Bitcoin-specific subsidiary MacroStrategy revealed that it has taken out a $205 million Bitcoin-collateralized loan to buy even more Bitcoin. This loan was a bit unique as this was the first time MicroStrategy borrowed against its own Bitcoin reserves to purchase more of the cryptocurrency. 

Furthermore, Saylor also commented on El Salvador’s decision to postpone the issuance of its $1 billion Bitcoin backed Volcano bond. In an attempt to warn El Salvador, he highlighted that the country’s decision on the Volcano bond was somewhat riskier than his company’s Bitcoin collateralized loan. 

He highlights that it is a hybrid sovereign debt instrument as opposed to a pure Bitcoin treasury play. And that it has its own credit risk and has nothing to do with the Bitcoin risk itself. 

The Bitcoin enthusiast further added that he is still extremely bullish on the long term potential for the bonds based on BTC. He even said that it would be good for cities like New York to utilize Bitcoin as a debt instrument. New York can issue $2 billion of debt and purchase $2 billion worth of Bitcoin, the BTC is yielding 50% or more, and the debt costs 2% or less. 

The NASDAQ-listed business intelligence company MicroStrategy is constantly accumulating Bitcoin (BTC), and the CEO has emerged to be one of the popular vocal supporters of Bitcoin. The company has acquired 125,051 Bitcoin and is the largest Bitcoin holder. 

Michael Saylor often takes to his Twitter account to talk about Bitcoin, and its potential, his very recent Tweet about Bitcoin was a few hours ago that said in for a satoshi, in for a Bitcoin.

The post Are Markets Not Quite Ready For Bitcoin Bonds? Michael Saylor Thinks So appeared first on The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News.

Source: https://www.thecoinrepublic.com/2022/04/01/are-markets-not-quite-ready-for-bitcoin-bonds-michael-saylor-thinks-so/