Dollar Debt Issued To Buy Bitcoin By Nation State


The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Over the weekend, the president of El Salvador, Nayib Bukele, and Blockstream announced the issuing of a $1 billion U.S. “Bitcoin Bond” on the Liquid Network. This comes directly after the International Monetary Fund announced last week that “for the moment, it is not discussing a possible financial agreement with the Salvadoran government” referring to the potential $1 billion loan agreement.

The $1 billion bitcoin bond will be split 50/50 for buying bitcoin and building out energy and bitcoin mining infrastructure. The bond’s duration is 10 years, paying 6.5% initially with additional dividends paid out to bondholders from bitcoin holding liquidations after a five-year lockup period. The initial bonds will be issued in 2022, with Blockstream highlighting that it can easily accept investments as small as $100.

Leave A Reply

Your email address will not be published.