When Michael Saylor announced MicroStrategy’s conversion of $250 million in Treasury reserves to bitcoin in August 2020, Wall Street analysts dismissed it as a reckless gamble. “Superior to cash,” Saylor declared of bitcoin at the time, drawing skepticism from traditional banking circles.

Yet today, those same banks that sneered at bitcoin’s corporate adoption are now scrambling to participate in bitcoin-collateralized lending as they race to capitalize on its superior characteristics as institutional-grade collateral and a thriving product-market fit.

Traditional collateral, such as real estate, requires manual appraisals, subjective valuations and complex legal frameworks that vary by jurisdiction. Bitcoin, by contrast, offers instant verification of collateral backing through public blockchain data, 24/7 real-time settlement and liquidation capabilities, uniform quality regardless of geography or counterparty, and the ability to enforce lending terms programmatically.

When a lender realizes that they can instantly verify and potentially liquidate bitcoin collateral at 3 a.m. on a Sunday — while real estate sits waiting for manual appraisals, subjective valuations, and potential evictions— there will be no

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Author: Mauricio Di Bartolomeo