MicroStrategy To Lend Out Bitcoin To Generate Yield

MicroStrategy is making headlines again. The company looks for ways to generate yield on the massive BTC holdings.

According to the latest reports coming from Bloomberg, the Chief Executive Officer Michael Saylor discussed the strategy Thursday on the company’s investor day call with shareholders.

As you probably know by now, Saylor has been using cash flows from MicroStrategy’s leading business to buy the coin.

It also issued two convertible bonds and a secured junk bond in addition to filing an equity shelf registration to raise money to acquire BTC.

Bitcoin opportunities

According to the same notes, MicroStrategy now owns more than 122,000 tokens, worth more than $5.6 billion at current prices.

While Saylor said the company hasn’t taken any formal steps yet toward putting its Bitcoin cache to use, he added the following:

“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.”

At the moment of writing this article, BTC is trading in the red and the king coin is priced at $46,325.

Despite the massive corrections that we are seeing in the crypto space these days, various signs are showing us the fact that Bitcoin is definitely still bullish.

Check out what Willy Woo had to say recently about something that retail traders are doing at the moment.

Stay tuned for more crypto-related news.

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