Say it isn’t so! Apparently, MicroStrategy ‘s Michael Saylor is considering lending the company’s Bitcoin. On a corporate level, that makes all the sense in the world. As a Bitcoiner, it doesn’t. Will MicroStrategy actually go through with it? Is lending a reasonable strategy? What are the implications? Also, why are hardcore Bitcoiners so against lending? Those questions and more, that’s what we’re here to explore.
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In any case, the lending should surprise no one. Saylor has been dropping hints that he intends to do it for a while now. All of this information comes from the “company’s investor day call with shareholders” on Thursday, Bloomberg informs.
What Did Saylor Say In MicroStrategy ‘s Call?
His exact words were:
“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. That could become a good source of income for us, or we could develop it with some kind of interesting applications.”
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. What does “a trustworthy counterparty” mean? Is it just a company that can guarantee yield, custody, and return of their BTC? Or are they talking about a company that’ll use that Bitcoin in an ethical way and not…