Michael Saylor told Bloomberg that he is planning to lend MicroStrategy bitcoins holdings and generate yield on it. Saylor said his company has yet to make a final decision on the matter. Major banks and enormous technology companies can be potential borrowers.
“There may be opportunities to either put a mortgage against it and generate long-term debt under favorable circumstances, which we could leverage up against the Bitcoin, or we think that we could lend it to a trustworthy counterparty.”
According to Saylor, lending company BTCs would be a good source of income for the shareholders.
“That could become a good source of income for us, or we could develop it with some kind of interesting applications.”
Saylor while answering a question said he also foresees the market’s willingness to issue bitcoin-backed bonds.
“I think that we’re still a little bit too soon to say whether there’s a good Bitcoin-backed bond market, but I look forward to exploring that in the future.”
On December 9, MicroStrategy acquired an additional 1,434 BTC for about $82.4 million. At the time of writing, the firm owns 122,477 BTC, worth $5.6 billion at current prices.
Crypto lending is a booming business in the cryptocurrency world and a key part of the growing field of Defi. If a company like MicroStrategy, with Bitcoin on its balance sheet, lends its assets, it would add a new twist to the crypto market.