After the SEC approved options trading for BlackRock's Bitcoin ETF, discussions about Bitcoin yields reignited.
In a recent podcast, MicroStrategy Chairman Michael Saylor proposed that government-backed U.S. banks could offer USD loans against Bitcoin as collateral, enabling holders to earn yields while retaining their assets.
This strategy positions MicroStrategy, which recently raised $1.01 billion to purchase more Bitcoin, to benefit from increased yields due to its 252,220 BTC holdings.
However, Saifedean Ammous, author of The Bitcoin Standard, expressed skepticism about the sustainability of such lending models, warning they could lead to failures like those of Celsius and BlockFi.
He noted that these systems lack stability without a lender of last resort and depend heavily on the assumption that the U.S. dollar will remain strong. With ongoing discussions about de-dollarization, the future of the dollar is uncertain.
Custodia Bank’s CEO Caitlin Long suggested that lending Bitcoin at a 1:1 ratio is acceptable, but anything above that indicates insolvency risk. MicroStrategy’s stock has significantly outperformed major tech companies and the S&P 500 thanks to Bitcoin adoption.
Bitcoin’s ownership landscape has shifted, with two institutions—BlackRock and MicroStrategy—now jointly holding more BTC than Bitcoin’s mysterious creator, Satoshi Nakamoto.
Bitcoin (BTC) managed to surge past the price mark of $89,000, as investors flock to the cryptocurrency amidst traditional market turbulence and increasing political uncertainties.
Bitcoin exchange-traded funds in the U.S. saw a major resurgence on April 21, marking their strongest day for net inflows in nearly three months.
Tokyo-based Metaplanet has continued its aggressive Bitcoin strategy, now holding over $400 million in BTC following its latest acquisition.