What's Next For MicroStrategy's Bitcoin Holdings, According To CEO Michael Saylor?

Zinger Key Points
  • MicroStrategy co-founder discusses possibility of futures contracts participation.
  • The company avoided Bitcoin lending due to bankruptcy concerns from other companies.
What's Next For MicroStrategy's Bitcoin Holdings, According To CEO Michael Saylor?

Enterprise-software company MicroStrategy Inc MSTR, the largest publicly traded Bitcoin BTC/USD holder, might consider participating in futures contracts on CME Group's marketplace to generate yield, according to Michael Saylor, MicroStrategy's co-founder and executive chairman.

In an interview with Bloomberg TV, Saylor shared that MicroStrategy previously considered lending its Bitcoin through other firms but ultimately decided against it due to the bankruptcy of companies such as Celsius Network CEL/USD, BlockFi, Voyager Digital and Genesis Global Holdings.

Regarding the possibility of participating in futures contracts, Saylor stated, "In the future, we will always consider forward yields. We may find a way to generate yield this way."

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As of December 2022, MicroStrategy held approximately 132,500 Bitcoin worth $2.2 billion, a value boosted by the recent crypto market rally.

Saylor emphasized he has no plans to split MicroStrategy's enterprise software and Bitcoin businesses, as they are interconnected.

Despite the company's recent net loss of $249.7 million in the fourth quarter of 2022 and a 1.5% decline in revenue to $132.6 million, Saylor remained committed to holding Bitcoin on MicroStrategy's balance sheet.

Last year, Saylor stepped down from his role as CEO to focus on this strategy, and despite the 64% drop in Bitcoin in 2021, causing a 74% decrease in MicroStrategy's shares, the world's largest cryptocurrency had seen a 40% increase this year, leading to a 99% surge in the company's shares year-to-date.

Nevertheless, MicroStrategy's shares were still down 27% in the past year.

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Photo: JOCA_PH via Shutterstock

Posted In: CryptocurrencyNewsMarketsBlockFiCelsius NetworkCME GroupGenesis Global Holdco LLCMichael SaylorVoyager Digital

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