Although it is unclear how this lending would get done, Saylor proposed this action as the best alternative to generate capital from MicroStrategy. Saylor also shared other ideas for the company and digital currency’s future.
The investment firm led by Michael Saylor, MicroStrategy, may be considering disposing of some of the capitalized Bitcoin and making loans to derive higher profits.
The information about these plans appeared precisely during a report directed towards the shareholders, where Saylor expressed the possibility of generating debt from the BTC capitalized by the company, with which they could offer loans with counterparties:
Michael Saylor expressed that there might be opportunities to put a mortgage on it and generate long-term debt under favorable circumstances.
In this regard, Saylor added that the idea of making loans with Bitcoin may well be lucrative since “it could become a good source of income … or develop as some kind of interesting application.”
Bitcoin Loans and the DeFi Sector
To analysts and enthusiasts, Saylor’s idea does not sound bad at all. It happens due to the current boom in the lending industry within the DeFi ecosystem, especially when a company like MicroStrategy currently owns more than $ 5.6 billion, a figure that corresponds to at least just over 0.5% of all BTC issued at press time.
At the same time, Saylor also highlights that cryptocurrency loans have become too famous in recent years. It starts with highly reputed cryptocurrencies and continues with recognized stable coins. Until today, these loans are leading to services that even accept NFTs that go to stakeholders more easily.
In the case of MicroStrategy, although it is not entirely clear how they would implement this idea, the sole truth is that the company and its shareholders could receive tons of benefits if the proposal gains traction.
Other Proposals from Saylor
But the idea of BTC loans was not the only idea that Saylor shared with shareholders, as the possibility of a Bitcoin-based bond market emerging going forward also loomed, on which he commented:
Saylor had said that a good bond market supported by Bitcoin is still an uncertain event. He said he firmly hopes to explore that sector in the future.
Another thing Saylor addressed during the meeting was the possibility of MicroStrategy issuing more stocks and corporate debt. This issuance of stocks would help boost more capital and acquire more Bitcoin shortly.
This situation would go hand in hand with the long-standing plans of the investor, in which he stands firm regarding the fact that the digital currency is a solid value proposition, which will undoubtedly replace gold as the main one.
By: Jenson Nuñez
