Microstrategy CEO Michael Saylor has said that global markets are not yet ready for bitcoin bonds.
In bloomberg In the interview, Sayler was hopeful that the day might come when securities backed for bitcoin could be made, but it’s not happening very soon.
“I would love to see a day where people finally sell mortgage-backed securities like bitcoin-backed bonds. The market just isn’t quite ready for that. The next best idea was a term loan from a major bank,” the CEO said after the announcement. Said he was taking loans to buy more digital assets.
The statement comes as El Salvador plans to sell $1 billion worth of “volcano bonds” backed by bitcoin.
Saylor said in the interview that the hybrid sovereign debt instrument “unlike pure bitcoin-Treasury play … has its own credit risk and is completely unrelated to bitcoin risk.”
The CEO is known as one of the strongest supporters of bitcoin and has dismissed any concerns about another crypto winter. He said this when bitcoin was almost 50% from its all-time high.
MicroStrategy loan to be backed by BTC Holdings
The $205 million loan, which will be backed by Microstrategy’s bitcoin holdings, was the best possible course for shareholders after exploring financing options, Sailor said.
Meanwhile, El Salvador continues to make headlines for decisions related to bitcoin. President Nayib Bukele recently announced a delay in bitcoin bonds, while Congress prioritized internal pension reforms.
Bonds will be issued with Bitfinex, a decision met with mixed sentiment. Overall, analysts believe that the country’s crypto experiments are not showing much effect.
According to a Chamber of Commerce survey, only 14% of respondents had transacted in bitcoin since September, when it became legal tender in the country.
Nevertheless, Bukele is focusing heavily on bitcoin. He is hoping to raise $1 billion around BTC to fund a city powered by geothermal energy.
Whether this will be implemented anytime soon remains to be seen, but country officials are hoping to get it done as soon as possible.