MicroStrategy may Start Lending Bitcoin Trove to Earn Yield

A new development from MicroStrategy about Bitcoin utility has become the talk of the business community. During the current year, institutional investment interest has increased in Bitcoin faster than ever before. However, most Bitcoin maximalists have thus far been opposed to the idea of lending their reserves.

It seems that one of the most vocal and outspoken Bitcoin advocates, Michael Saylor seems to disagree with this idea. He has been dropping hints about the idea for quite some time now. Bloomberg reported about the recent shareholders meeting with the board where Saylor put the prospect in front of the concerned parties for their consideration.

It is worth mentioning that the commercial and retail ownership of Bitcoin has very different financial dynamics. Saylor recently stated in the shareholders call that the company should look into exploring ways for a mortgage grant against Bitcoin reserve and draw out long-term debts. Saylor also claimed that it would create a steady income-generating stream for the organization.

On the other hand, he pointed out that it would be best to look for a trustworthy counterparty with a proven track record of ethical trading. He was addressing the concerns of the Bitcoin maximalists who fear that most lenders collect Bitcoins from the bidders to short the currency and place a bet against it. The company will also protect itself from losing the custody of its leveraged reserves, which is another big Bitcoiner’s objection.

El Salvador has recently made Bitcoin a legal tender and has many more plans with the token. The president of the country has also announced the issuance of a Bitcoin Volcano bond recently. Speaking on the matter of Bitcoin bonds, Saylor told his shareholders that the company is also considering a Bitcoin bond issue in the future.

He maintained that the process would move ahead if the results are accretive for the product. The company has also recently issued junk bonds in July to collect more funds for increasing its Bitcoin reserves. Saylor claimed that Bitcoin is a digital property that can be utilized to its maximum potential throughout the year due to its technical nature.