MicroStrategy’s Saylor Lays Out Ways Firm Could Generate Yield From Its Massive Bitcoin Holdings

The CEO discussed several ways the software company could produce income from the 122,478 bitcoin on its balance sheet.

AccessTimeIconDec 17, 2021 at 9:53 p.m. UTC
Updated May 11, 2023 at 5:52 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

MicroStrategy (MSTR) officials outlined some potential ways the company could generate yield from its enormous holdings of bitcoin during a virtual investor day Thursday.

  • MicroStrategy, which makes business analytics software but whose market cap largely reflects its bitcoin holdings, owned 122,478 bitcoin as of Dec. 10, according to the company’s presentation. Those bitcoin were purchased since the third quarter of last year for roughly $3.7 billion in total, and are now worth roughly $5.8 billion.
  • To generate income from its bitcoin, MicroStrategy could lend some portion of it to a “trustworthy counterparty,” CEO Michael Saylor said.
  • The company could also put its bitcoin into some form of partnership with a big tech company or bank. “You could think of that as putting a lien on it,” Saylor explained.
  • MicroStrategy might also look to put a mortgage against its bitcoin, generating long-term debt under “favorable circumstances.”
  • Finally, MicroStrategy could develop “some kind of interesting application” for its bitcoin, said the CEO.
  • Saylor noted in his presentation that no formal steps had been taken on any of these potential initiatives.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Author placeholder image

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.