Saylor Claims that MicroStrategy is Eyeing Bitcoin Futures as Part of their Cryptocurrency Strategy

Michael Saylor, who serves as Executive Chairman and co-founder of MicroStrategy Inc., spoke to the press in an effort to show that MicroStrategy, the world's largest publicly traded holder of Bitcoin, may at some point consider dabbling in futures contracts on CME Group's marketplace in order to generate a higher return on investment. 

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As a matter of fact, MicroStrategy considered lending out the company's Bitcoin in the past, but in the end decided not to do so because some of the companies, including some that went bankrupt last year, had failed, Saylor told Trade Algo. Celsius Network and BlockFi, both crypto lenders, filed for protection against creditors in 2022, as did Voyager Digital, a broker who filed for bankruptcy in January; Genesis Global Holdco LLC, another crypto lender, filed for bankruptcy in February. 

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It is my intention to consider forward yields in the future," Saylor said in response to the question. I believe that this might be an effective way of generating yield." 

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In August 2020, MicroStrategy announced that it would invest in Bitcoin. As of the end of December, according to Trade Algo data, it appeared that the company had accumulated a total of 132,500 tokens in its possession, worth approximately $2.2 billion. Cryptocurrency has had a recent rally in value, and as a result, the value of the holdings has increased. 

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The CEO of MicroStrategy has also stated that he does not plan to separate the enterprise software business and the Bitcoin business because they are interconnected. 

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The Tysons Corner, Virginia-based company reported a net loss of $249.7 million in its fourth quarter last week, which is an increase from the third quarter. In terms of revenue, revenues fell 1.5% to $132.6 million, which as expected was a lesser drop than expected. After a decline in the value of its Bitcoin holdings, the company recorded a $197.6 million impairment charge for the three months that ended in December, which was reduced by the gains in sales and the decline in the value of its Bitcoin holdings. 

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Earlier this year, Saylor relinquished the Chief Executive position of the company he co-founded in order to set up the company as a Bitcoin holding company instead of holding conventional assets such as cash, which would permit the company to grow rapidly without having to continually raise capital. 

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It has been estimated that Bitcoin fell by 64% in 2021, which contributed to the drop of the company's shares by 74%. During the first quarter of this year, Bitcoin has surged 40%, while MicroStrategy's shares have gained 99%, and the world's biggest cryptocurrency has surged 40%. In the last year, there has been a drop of more than 27% in their stock price. In the early hours of Tuesday morning, the stock fell less than 1% to $279.89 as of 9:50 a.m. in New York.