To date, MicroStrategy has acquired more than 122,000 BTC — and now the company is looking at potential ways to “generate yield” from those holdings, according to CEO Michael Saylor.
While Saylor stressed that “we have not taken any formal step here yet,” he nonetheless explained that the company is “really enthusiastic about the opportunities to generate yield off of our bitcoin.” The potential options for such a strategy were outlined during an investor day presentation on Friday, during which Saylor elaborated on the firm’s overall business strategy.
He went on to say:
“We think that [in] the future, 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. And when we find the counterparty that we trust and the circumstance w e trust, we might lend it out and generate yield. Or the third possibility would be to put it in some kind of partnership. You can think of it as putting a lien on it. If we did a partnership with a big tech company or a big bank or some other player that really wanted that access to that bitcoin, that could become a good source of income for us.”
Saylor added that “[o]r we could develop it, with some kind of interesting application.”
As might be expected, Saylor stated that the company is “going to keep acquiring bitcoin, that’s the plan, that’s the strategy.”