During a virtual investor day, Michael Saylor revealed the ways in which their company can put their enormous Bitcoin holding to earn yield. MicroStrategy currently holds 122,478 BTC on their Balance Sheet.
Michael Saylor, CEO of MicroStrategy on Thursday during a virtual investor day revealed that the 122,478 BTC on their balance sheet has already profited them by leaps and bounds. The entire BTC holding was bought for approximately $3.7 Billion which is already worth $5.8 Billion even when the price of BTC has fallen.
Saylor revealed multiple ways in which MicroStrategy can generate yield from its enormous amount of Bitcoin Holdings. MicroStrategy can lend a portion of its Bitcoin to a “trustworthy counterparty” to generate income or can put its BTC in some kind of partnership with a big tech company or even a Bank. MicroStrategy can even put a mortgage against its Bitcoin to generate a long term debt in certain favorable conditions and can even develop an application for its Bitcoin Holdings that would somehow generate income.
Though Michael Slayer also claimed that no practical implementation on any of the said ways has been done and they are just potential initiatives that can help the company in generating yield from its Bitcoin Holdings. Saylor said that MicroStrategy will keep adding Bitcoin to its balance sheet at every dip possible as the company sees a huge potential in Bitcoin and blockchain technology.
Disclaimer: The article is meant for the educational purpose only and in no way it should be considered as financial advice. Own research on the topic is advisable.
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