MicroStrategy is the pioneer of Bitcoin capital markets, the report says. The company raised $4 billion in convertible debt to buy Bitcoin. Bernstein said no other company has an active Bitcoin investment strategy that could attract large amounts of capital. 🚀

MSTR is the only company developing institutional demand for Bitcoin-linked convertibles. The company raised $4 billion in convertible debt to buy more Bitcoin. The company currently owns 214,400 Bitcoins and is worth approximately $14.5 billion. 💰

MicroStrategy's long-term convertible debt strategy means it has ample time to capitalize on the potential Bitcoin rally with limited liquidation risk to the cryptocurrency on its balance sheet. When Bitcoin rises, the company has more room to issue new debt. Conversely, when crypto declines and leverage increases, the company may issue new shares to reduce leverage. 📈

This use of both equity and debt has increased MicroStrategy's Bitcoin per share by approximately 67% over the past four years. Bernstein notes that MicroStrategy has not sold any Bitcoin since it began purchasing the cryptocurrency in 2020 and expects the company to continue raising capital to add to its stock. 🎯

Bernstein set an overperform rating and a $2,890 price target on MicroStrategy stock. Shares erased a decline of as much as 2.5% and traded little changed around $1,509. 📊

How successful do you think MicroStrategy's Bitcoin strategy will be? We are waiting your comments!#DeFi#Web3