MicroStrategy CEO Michael Saylor has said that global markets are not yet ready for bitcoin bonds.
In a Bloomberg interview, Saylor was hopeful that the day might come when securities could be backed for bitcoin, but does not see it happening very soon.
“I’d love to see a day where people eventually sell bitcoin-backed bonds like mortgage-backed securities. The market is not quite ready for that right now. The next best idea was a term loan from a major bank,” said the CEO after announcing he was taking a loan to buy more of the digital asset.
The statement comes as El Salvador is planning to sell $1 billion worth of “volcano bonds” backed by bitcoin.
Saylor said in the interview that the hybrid sovereign debt instrument “as opposed to a pure bitcoin-treasury play… has its own credit risk and has nothing to do with the bitcoin risk itself entirely.”
The CEO is known to be one of the strongest supporters of bitcoin and has dismissed any concerns about another crypto winter. He said this when bitcoin was nearly 50% from its all-time high.
MicroStrategy loan will 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 a slew of financing options, Saylor said.
Meanwhile, El Salvador continues to make headlines for decisions related to bitcoin. President Nayib Bukele recently announced a delay to the bitcoin bond while congress prioritized internal pension reforms.
The bonds will be issued with Bitfinex, a decision met with mixed sentiment. Overall, analysts believe that the country’s crypto experiments do not seem to be having much impact.
According to a chamber of commerce survey, only 14% of respondents had made transactions in bitcoin since Sept, when it became a legal tender in the country.
Still, Bukele is focusing greatly on bitcoin. He is hoping to raise $1 billion to fund a city based around BTC and powered by geothermal energy.
Whether this will materialize anytime soon remains to be seen, but the country’s officials are hoping to get this done as soon as possible.