Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Financial Markets Not Yet Ready for Bitcoin-Backed Bonds, Says MicroStrategy’s Michael Saylor

by Daily Hodl Staff
April 5, 2022
in Bitcoin

MicroStrategy CEO Michael Saylor says he had to borrow money from a bank to fund his firm’s latest Bitcoin purchase because the financial markets are not yet ready to invest in bonds backed by BTC.

In a press release, business intelligence company MicroStrategy reveals that it has taken out a $205 million loan to buy more Bitcoin.

Silvergate Bank issued the loan under its Silvergate Exchange Network (SEN) to MacroStrategy, a subsidiary of MicroStrategy. The interest-only term loan is secured by BTC held in MicroStrategy’s collateral account.

MicroStrategy chief executive Michael Saylor says the loan gives the firm an opportunity to further its position as “the leading public company investor in Bitcoin.”

“Using the capital from the loan, we’ve effectively turned our Bitcoin into productive collateral, which allows us to further execute against our business strategy.”

MicroStrategy owns nearly $6 billion worth of Bitcoin.

Saylor tells Bloomberg in a new interview that the company took out a loan because financial markets are not ready to accept Bitcoin-backed bonds.

“I’d love to see a day where people eventually sell Bitcoin-backed bonds like mortgage-backed securities. The market is not quite ready for that right now. The next best idea was a term loan from a major bank.”

One of the biggest current proponents of Bitcoin bonds is the government of El Salvador, which announced plans for a new futuristic “Bitcoin City” project in November after making BTC legal tender two months earlier.

To fund the city, the government plans to issue BTC bonds, and it teamed up with Bitcoin development firm Blockstream to prepare them for investors.

However, the rollout of those bonds is reportedly facing legislative delays.

Bukele announced a series of legal reforms involving Bitcoin in late February, but local publication La Prensa Grafica reports that the country’s Congress has yet to receive the laws necessary to actually implement the bonds.

Saylor tells Bloomberg that the Central American country’s BTC bonds will have risk outside of Bitcoin.

“There’s a lot of talk about the El Salvador Bitcoin bond. 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.”

Check Price Action

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

 
Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Alberto Andrei Rosu

Submit a Press Release

Industry Announcements

  • Wombat Soars to $40 Million in Total Value Locked While Still at Beta
    May 20, 2022
  • Babel Finance Used Collateralized eNote on FQX’s Solana DApp via Fireblocks
    May 19, 2022
  • Top Solana Play-to-Earn Contender DeFi Land Launches Its First Play-and-Earn Game
    May 18, 2022
  • Sneakmart Announces a Collaboration With StockX on Its First Metakicks Drop
    May 18, 2022
  • Everyrealm and Storyverse Partner To Create Interactive Stories for NFT Communities
    May 18, 2022
  • DoraHacks Raises $20 Million Led by FTX Ventures and Liberty City Ventures To Scale Its Global Web 3.0 Startup Platform
    May 18, 2022
  • BinaryX Unveils CyberArena – A New Play-To-Earn Experience
    May 18, 2022
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$29,196.00
$29,196.00
4.03%
Ethereum
$1,963.48
$1,963.48
3.13%
Cardano
$0.510924
$0.510924
5.53%
XRP
$0.411207
$0.411207
2.71%
Dogecoin
$0.083897
$0.083897
3.7%

Spotlight

  • Crypto Capitalist Arthur Hayes Forecasts Dramatic New Lows for Bitcoin (BTC) and Ethereum (ETH)
    May 14, 2022
  • Chainlink (LINK), VeChain (VET) and One More Altcoin Nearing Potential Trend Reversals, Says Top Crypto Analyst
    May 17, 2022
  • Top Crypto Analyst Predicts Strong Bitcoin Bounce, Says BTC Rally Will Run Beyond Expectations
    May 15, 2022
  • Crypto Exchange Coinbase Unveils New DApp Wallet and Browser for Ethereum (ETH) Network
    May 18, 2022

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2022 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • Email Alerts
  • DAILY HODL MIX

© 2022 The Daily Hodl