Trader T cited Bloomberg terminal data and shared a chart of MicroStrategy's latest debt holder data (data updated as of November 21), with Vanguard and BlackRock being the largest holders who participated in the subscription of the convertible bonds issued by MicroStrategy during this period. The list also surprisingly includes Taiwanese financial institutions, including Cathay Securities, Fubon Securities, and Yuanta Group.
Previously, Soros Fund Management LLC also reported holding MicroStrategy's second convertible corporate bond worth over $250 million. However, in this 13F report, all have been converted or sold.
(The Soros Fund bought MicroStrategy's convertible bonds worth over $250 million in 2021)
MicroStrategy is aggressively issuing convertible bonds, with its stock price having a premium of 256% compared to Bitcoin.
MicroStrategy, which prides itself as a Bitcoin development company, announced the '21/21 Plan' in October, aiming to raise $42 billion in capital over the next three years, which includes $21 billion in equity and $21 billion in fixed-income securities. This plan will further support its acquisition of Bitcoin as part of its treasury reserve strategy.
MicroStrategy recently announced the issuance of 0% convertible preferred notes, which not only do not pay interest but also have a premium of up to 55%. However, of the planned $21 billion in convertible bonds, the current $6.8 billion is just the beginning.
As Bitcoin continues to rise, MicroStrategy (MSTR) has become the largest traded stock in the U.S. by volume, with its stock price increasing 473% year-to-date, far outperforming Bitcoin.
(The incredibly aggressive MicroStrategy convertible bonds do not pay interest, and trading volume surpasses Nvidia, becoming the largest in U.S. stocks.)
However, compared to the value of its held Bitcoin, its stock price has a premium of 256%. MicroStrategy was hit with a short report from the well-known investment research firm Citron Research, causing its stock price to drop 16% in one day.
(MicroStrategy has a premium of up to 256% over Bitcoin and dropped 16% after being shorted by Citron.)
This article notes that Taiwanese financial institutions are also crazy about MicroStrategy's convertible bonds, with Cathay, Fubon, and Yuanta all participating. It first appeared in Chain News ABMedia.