Microstrategy (MSTR) Considering Mortgaging its Massive Bitcoin Hoard, CEO Says

Microstrategy, Inc. (NASDAQ: MSTR) is now positive on the session after the CEO suggested the company may lend out its Bitcoin to generate yield.

At an investor call on Thursday, CEO Michael Saylor commented:

"MicroStrategy is kind of 3 years -- 2 to 3 years ahead of everybody else in this space in terms of sophistication and thinking about how we're going to generate yield and actively manage our Bitcoin. Now we haven't -- we have not taken any formal step here yet. And when we do, of course, we'll announce it and you'll be reading about it. But I think we're very enthusiastic about the opportunities to generate yield off of our Bitcoin.

We think that 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 we trust, we might lend it out and generate yield or the third possibility would be to put it into some kind of partnership. You could think of that as putting a lien on it. And 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. Or we could develop it with some kind of interesting application."

As of December 8, 2021, the Company held approximately 122,478 bitcoins that were acquired at an aggregate purchase price of $3.66 billion and an average purchase price of approximately $29,861 per bitcoin, inclusive of fees and expenses.

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