Vic on Nostr: 1. Issue Convertible Bonds that mature in the future. 2. Use proceeds from bond sales ...
1. Issue Convertible Bonds that mature in the future.
2. Use proceeds from bond sales to buy Bitcoin today.
3. Stock values increase due to more Bitcoin held and Bitcoin's value appreciation
4. At thresholds set out in terms of Bond, Microstrategy pays back with either Cash or conversion to shares. Share issuance dilutes the stock, cash could come from future Bond sales
Incentive for Bond buyers is the effective USD yield over time based on the ratio of share equivalent for the offering and share price appreciation from Microstrategy activities.
Many of these bond buyers cannot buy Bitcoin directly due to regulations so this new product gives them value exposure and effective yields that make other bonds look like trash
2. Use proceeds from bond sales to buy Bitcoin today.
3. Stock values increase due to more Bitcoin held and Bitcoin's value appreciation
4. At thresholds set out in terms of Bond, Microstrategy pays back with either Cash or conversion to shares. Share issuance dilutes the stock, cash could come from future Bond sales
Incentive for Bond buyers is the effective USD yield over time based on the ratio of share equivalent for the offering and share price appreciation from Microstrategy activities.
Many of these bond buyers cannot buy Bitcoin directly due to regulations so this new product gives them value exposure and effective yields that make other bonds look like trash