This time, MicroStrategy issued a total of $1.01 billion in bonds, up from the $700 million announced a few days ago due to overwhelming demand.

MicroStrategy is HODLing a total of 252,220 BTC (~$9.9 billion).

The total debt is $4.2 billion but the average interest rate is only 0.81% per year, equivalent to about $34 million.

MicroStrategy has ~$80 million in revenue per year from its software business, which is enough to pay the interest and is likely to continue selling more bonds soon. As the price of BTC increases, this debt will slowly disappear because the creditors will convert the bonds into stocks.

The creditors will receive stocks that MicroStrategy will print themselves later, while MicroStrategy will still hold the BTC.

The risk of this system is that they lose their BTC or BTC collapses and disappears...