Michael Saylor, CEO of trade intelligence firm MicroStrategy, believes that the financial market is not ready for a Bitcoin-backed bond. Meanwhile, El Salvador postponed the launch of its BTC-backed volcano bonds.

Now is not the time for a Bitcoin-backed bond

In a recent interview with Bloomberg, the MicroStrategy CEO, while not generally opposed to Bitcoin-backed bonds, believes that now is not the time to issue such a project.

“I would love to see a day when people finally sell Bitcoin-backed bonds as mortgage-backed securities. The market is not quite ready for that at the moment. The next best idea was a term loan from a major bank.” – He said.

The CEO’s comment comes as El Salvador looks to launch a $1 billion Bitcoin bond. Speaking about the Central American country’s Bitcoin-backed volcano bonds, the head of MicroStrategy said:

“That is a hybrid sovereign debt instrument rather than a pure Bitcoin treasury game. That has its own credit risk and has nothing to do with the risk of Bitcoin itself.”

As CryptoPotato previously reported, El Salvador was preparing to launch its 10-year Bitcoin Bond. The projected revenue of $1 billion will be split in two, with half going to BTC investment, with the rest used to develop the much talked about “Bitcoin City”.

However, in early March, the launch date was postponed, with El Salvador’s Finance Minister Alejandro Zelaya citing unfavorable market conditions as the reason for the delay.

Saylor says the $205 million loan was the best financing option

MicroStrategy subsidiary MacroStrategy recently secured a $205 million loan from Silvergate Bank, a division of Silvergate Capital Corporation, secured by bitcoin holdings. As part of the deal, MacroStrategy will use the loan to purchase BTC, pay interest on fees, and bear any expenses related to the loan.

Saylor, for his part, said getting the loan was the best decision for the company’s shareholders. The MicroStrategy CEO said various financial options were considered, such as issuing Bitcoin-backed bonds, borrowing BTC, and leveraging decentralized finance (DeFi) tools.

Saylor is one of the most prominent Bitcoin advocates in the industry. The CEO’s business intelligence company has been accumulating BTC since 2020 and is currently the largest corporate holder of bitcoin, with over 125,000 BTC in its reserve.

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