Sea 19 February 2025 ▪
4
min at reading ▪
Microstrategy navigates as an insatiable giant while bitcoins oscillates around $ 96,000, a company led by Michael Saylor has just revealed a new gloss: convertible emissions of $ 2 billion, which was supposed to inflate his bitcoin treasure. A courageous strategy, almost provocative, which asks as fascinated. How did the traditional society turn into Mastodon Crypto? Above all, how far will this task go?
Saylor’s Infernal Mechanics: Oblishers to twist Bitcoin
Microstrategy, renamed strategy that does not rely on classic funds. His favorite weapon? Obligations converted to 0 %, a hybrid financial instrument that seduces the same way as it confuses.
These titles, replaceable in future events, allow companies to collect billions without immediate interests. Blessing to buy Bitcoins, but also a risky bet: If the price of bitcoins collapses, bond holders could require broken prices and dilute the value of the company.
The logic of the saylor is based on a simple equation: lending at zero rate, convert debt into capital if bitcoins rises and repeat the operation.
Since October 2023, the strategy has entered this system of $ 21 billion, which increased its reserves to 478,740 BTC. A dizzying figure that corresponds to 2.3 % of the total bitcoin range. For some it is financial engineering. For others, the pyramid of masked debts.
However, the market seems to play the game.
Confidence, which is explained by the previous performance: despite the net $ 670 million losses in the last quarter of 2023, the MSTR event jumped by 372 % in one year. Proof that traditional indicators sometimes lose their importance in the crypto era.
Paradoxical strategy
As a company exposing colossal losses becomes a You must have Wallets? The answer is in one word: Bitcoin.
The strategy embodies a new era where the value is measured according to the digital assets, not generated profits. By transforming his company into indirect bitcoin proxy and attracting investors who want to expose crypto without holding bitcoins without holding it directly.
However, this metamorphosis is not without gray areas. The issued obligations will ripen in 2030, with the exception of early conversions. Until then, the strategy will have to take over its debts … or hope that Bitcoin will achieve stratospheric heights. In the case of crash, bond holders could require cash compensation and plunge the company into a nightmare.
Despite everything, the model tempts. Twelve US states already hold strategic shares of $ 330 million. Institutional adoption that de facto confirms the strategy of Sayro, although it remains marginal.
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Evariste, fascinated by Bitcoin since 2017, has not stopped documenting on this topic. If his first interest focused on trading, he now tries to actively understand all cryptocurrency progress. As an editor, he tries to permanently provide high quality work that reflects the condition of the sector as a whole.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.