CEO of MicroStrategy Thinks Global Markets is not prepared to welcome Bitcoin Bonds

Michael Saylor-CEO of avid Bitcoin and MicroStrategy proponent said that now is not the right time for a BTC-backed bond.

Now is Not the Right Time for a Bitcoin-Backed Bond
In the interview with Bloomberg, the Microstrategy CEO, while not generally opposed to Bitcoin-backed bonds, thinks that now is not the time to issue such a project.

He said. He said- ‘‘ I’d love to see a day where people someday sell Bitcoin-Backed bonds like mortgage-backed securities. The market is not entirely ready for that right now. The following best idea was a term loan from a major band.’’

The CEO’s comments come as El Salvador is looking to start a $1 billion Bitcoin bond. Talking about the Central American country’s Bitcoin-backed volcano bonds, the MicroStrategy chief said:
‘‘That’s a hybrid monarch 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 entirely.’’

As reported before, El Salvador was gearing up to launch its 10 years Bitcoin bond. The intended proceeds of $1 billion will be divided in two, with half going into BTC investment and the rest will be used to create the much-talked-about ‘‘Bitcoin City.’’

However, earlier in March, the launch was delayed because of some unfavorable market conditions.
Saylor Says $205 Million Loan Was the Greatest Financing Option
MicroStrategy’s subsidiary MacroStrategy lately secured a $205 million loan from Silvergate Bank, a division of Silvergate Capital Corporation that is collateralized by Bitcoin holdings. MacroStrategy will use the loan to buy BTC, pay fees interest and take care of expenses related to the loan.

Saylor said that getting the loan was the best decision for the company’s shareholders. The MicroStrategy CEO said that many financial options such as Bitcoin-backed bond insurance, loaning out BTC, and leveraging decentralized finance tools were considered.

Saylor is one of the most well know Bitcoin proponents in the industry. The CEO’s business intelligence company has been gathering BTC since 125,000 BTC in its stash.