CoinVoice latest news, reported by foxaraby, MicroStrategy issued stocks or zero-coupon debt backed by a small amount of Bitcoin reserves to buy a large amount of Bitcoin through simple arbitrage. The company announced in October that it plans to raise $42 billion over three years using these methods and is accelerating towards this goal.
Bernstein analysts believe that 'MicroStrategy is playing a leveraged game with Bitcoin.' Analysts state that the longer debt maturities provide the company with some buffer against immediate repayment or Bitcoin price fluctuations. Additionally, even if MicroStrategy has to issue stocks to repay convertible bonds, the dilution effect of these stocks on the company's equity is limited.' MicroStrategy increasingly relies on issuing stocks to purchase Bitcoin, but when it opts for convertible bonds, bond buyers can obtain an option to convert them into company stock at a certain price, which is almost equivalent to a call option. [Original link]
