Is MicroStrategy Considering Lending Their Bitcoin To Generate Yield? WHY?

Those questions and more, that’s what we’re here . exploreto In fact, Say it from another perspective ’isn t so! As a Bitcoiner it, doesn’t. Also, why are hardcore Bitcoinersso against lending? Apparently, MicroStrategy ‘s Michael Saylor is considering lending the corporation’s Bitcoin. Whatimplicationsare the ? Is lending strategy reasonable a? On a corporate level, that makes all the sense in the world. Will MicroStrategy actually go through with it?

Related Reading | Michael Saylor Says Bitcoin Is The Oxygen Mask That Will Save Investors

In any case, the lending should surprise no one. a has been dropping hints that he intends to do it for Saylor while instantly. All of this information comes from the “company’s investor day call with shareholders” on Thursday, Bloomberg informs.

What Did Saylor Say MicroStrategy ‘sInCall?

His exact words were:

As you may know, “There may be opportunities to either put a mortgage against it and generate long-condition debt under favorable circumstances, which we could leverage up against the Bitcoin, or we think that we could lend it to a trustworthy counterparty. Interestingly, That could become a good source of income for us, or we could develop it with some kind of interesting applications.”

Interestingly, So, they’re still thinking about it and there are a few options on the table. And, even if they choose to lend the Bitcoin for yield, there are infinite possibilities there. In fact, What does “a trustworthy counterparty” mean? Is ? just a company that can guarantee yield, custody, and return of their BTCit Or are they talking about a business that’ll utilize that Bitcoin in an ethical way and not short their own investment?

Maybe they’ll find as a matter of fact a utilize employ in which the lender doesn’t case their Bitcoin for nefarious purposes. Interestingly, Is that in the best interest of MicroStrategy? In fact, That’s one of the main reasons hardcore Bitcoiners are against lending. Will they ? in the activity for the yield as a matter of fact alonepartake Maybe they won’ more than ever t. People whoshortborrow as it turns out BTC usually use it to Bitcoin. They as a matter of fact bet against the asset and drive the niche down.

Self-custody is paramount in Bitcoin culture, and the yield isn’t worth the of surrenderingriskyour BTCs to in modern times another entity. Bitcoiners don’t lend their BTC because they don’t wantHardcoreto fall short custody. Interestingly, The other reason Bitcoiners are against lending doesn’t affect MicroStrategy.

As you may know, If the rumors are true, is already the custodianCoinbaseof MicroStrategy ’s Bitcoin. In fact, Make of that what you will.

BTC price chart for 12/17/2021 on EXMO | Source: BTC/USD on TradingView.com

MicroStrategy Considers A Bond Option

Indeed, to’s a second quote in the Bloomberg overview that points There yet another option. This one might be more akin to what’s going on in the world, but, what do we know? Actually, In response to a inquiry, Saylor reportedly said:

“I think that we’re still a little bit too soon to say whether there’s a good Bitcoin-backed bond industry, but I look forward to exploring that in the future,” he said, adding that he would approach this kind of bond offering if it was accretive to shareholders.” 

Interestingly, In other words, MicroStrategy will see how the El Salvador Bitcoin Volcano Bond does, before committing. The ofeyesthe world are on that investment vehicle, as they’ve been on El Salvador since the country announced the Bitcoin Law. Their “junk bond deal from June (…) currently trades around par, or 100 cents the dollar, as a matter of fact accordingonto Trace bond-pricing details.” In any case, it should be noted that MicroStrategy as a matter of fact is no stranger to bonds.

Related Reading | Michael Saylor Brings The Thunder To Venezuelan Bitcoin-Only Podcast

Bonus: Bitcoin As Digital Property

Last but not least, why did we say that Michael Saylor has been dropping hints about the lending of their Bitcoin? Wellain , recent What Bitcoin “Did” episode he digital about Bitcoin being talked property.Perfect. It’s worth noting that He compared it to a hotel.Ok from another perspective . As you may know, In the real world, all hotels have . least 30% of empty roomsatThat sounds about right.It’s worth noting that If that hotel could be in the digital world, the owner could rent allbecauseof the rooms all the time, the demand comes from the whole planet.Where are you going with this, Saylor? In fact, he said, we could rent those rooms every second of every day.WHAT?! It’s worth noting that This man is definitely considering lending MicroStrategy more than ever ‘s Bitcoin.

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