MicroStrategy Is Considering Lending or Putting A Mortgage Against its Bitcoin Holdings
Business intelligence company MicroStrategy is now looking for ways to generate yields on its Bitcoin stash.
On the company's investor day call with shareholders, CEO Michael Saylor said they could lend a portion of Bitcoin holdings to a “trustworthy counterparty.”
This would put the company into a kind of partnership with a bank or a big tech company. “You could think of that as putting a lien on it,” Saylor said.
“That could become a good source of income for us, or we could develop it with some kind of interesting applications.”
Saylor further said that the company could also “put a mortgage against it” to generate long-term debt under favorable circumstances.
For now, no formal steps have been taken on any of the potential options, Saylor noted during the virtual presentation.
Using cash flows from MicroStrategy's main business and issued two convertible bonds and a secured bond, the company has amassed more than 122,500 Bitcoin worth over $5.7 billion at the current price of about $46,850.