MicroStrategy is currently looking for ways to use the astonishing Bitcoin treasure more efficiently.
Bitcoin is now an indispensable part of the company. As a matter of fact, even board payments are made in Bitcoin instead of dollars.
In the meantime, company CEO Michael Saylor, who is in search of making more profit from Bitcoin, announced in a meeting with investors that they can loan some of the Bitcoin to a “trusted counterparty” to generate income.
As it is known, the company had a considerable amount of Bitcoin by reaching 122,478 Bitcoins as of December 10.
Without a doubt, “lending” is one of the most popular cryptocurrency services in the emerging industry.
Crypto lending is particularly popular in the decentralized finance (DeFi) sector, where investors invest their assets in liquidity pools.
It is possible to lend your crypto assets to borrowers for an opportunity to earn interest and make a profit.
Saylor further explained how lending could be profitable for his company: “This can be a good source of income for us.” said.
Another way MicroStrategy can earn through BTC is by placing a mortgage on the Bitcoin cache and generating long-term debt under “favorable conditions”.
Cryptocurrencies Provide More Income Compared to Fiat Coins!
MicroStrategy announced in August 2020 that it would accept Bitcoin as a treasury reserve asset.
The company stated that it sees cryptocurrencies as more lucrative and safe than holding fiat money, and defined cryptocurrencies as a “store of investment opportunity”.
The Virginia-based company, which has continued its Bitcoin purchases since then, has issued convertible top notes and junk bonds to fund purchases of the cryptocurrency.
Another investment option Saylor mentions is to enter into some kind of partnership with a big tech firm or banking institution.
However, none of these options have been accepted by the company.
They Will Keep Buying Bitcoin
The CEO also stated that the firm will continue to collect more Bitcoins.
Bitcoin price, on the other hand, looks pretty far from its November ATH ($69,044.77).
BTC is currently trading around $47,200. But Saylor and MicroStrategy still believe that Bitcoin is the best asset.