Bernstein Analysts Unveil the MicroStrategy “Miracle”: How Can They Buy So Much Bitcoin?
The post Bernstein Analysts Unveil the MicroStrategy “Miracle”: How Can They Buy So Much Bitcoin? appeared on BitcoinEthereumNews.com. MicroStrategy (MSTR), a software company, continues to make a splash in the cryptocurrency world. According to a research report published today by Bernstein, the company is not only converting its corporate treasury into cryptocurrency but also pioneering the Bitcoin (BTC) capital markets. Analysts Gautam Chhugani and Mahika Sapra noted that MicroStrategy is the only company that has successfully developed institutional demand for Bitcoin-related convertibles. To date, MicroStrategy has raised a staggering $4 billion in convertible bonds for the sole purpose of buying more Bitcoin. A convertible bond is a type of debt security that can be converted into shares. Currently, the firm led by Michael Saylor holds 214,400 BTC worth approximately $14.5 billion. The company began purchasing BTC as a reserve asset in 2020. The authors emphasized that “No other company has an active BTC investment strategy that can attract capital on a large scale.” According to analysts, MicroStrategy’s long-term convertible debt strategy provides enough time to benefit from a potential Bitcoin price increase while limiting liquidation risk to the cryptocurrency on its balance sheet. Microstrategy has a unique approach to managing its finances. When Bitcoin prices rise, the company has more room to issue new bonds. Conversely, when crypto declines and leverage increases, the firm may issue new shares to reduce leverage, Bernstein noted. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/bernstein-analysts-unveil-the-microstrategy-miracle-how-can-they-buy-so-much-bitcoin/
The post Bernstein Analysts Unveil the MicroStrategy “Miracle”: How Can They Buy So Much Bitcoin? appeared on BitcoinEthereumNews.com.
MicroStrategy (MSTR), a software company, continues to make a splash in the cryptocurrency world. According to a research report published today by Bernstein, the company is not only converting its corporate treasury into cryptocurrency but also pioneering the Bitcoin (BTC) capital markets. Analysts Gautam Chhugani and Mahika Sapra noted that MicroStrategy is the only company that has successfully developed institutional demand for Bitcoin-related convertibles. To date, MicroStrategy has raised a staggering $4 billion in convertible bonds for the sole purpose of buying more Bitcoin. A convertible bond is a type of debt security that can be converted into shares. Currently, the firm led by Michael Saylor holds 214,400 BTC worth approximately $14.5 billion. The company began purchasing BTC as a reserve asset in 2020. The authors emphasized that “No other company has an active BTC investment strategy that can attract capital on a large scale.” According to analysts, MicroStrategy’s long-term convertible debt strategy provides enough time to benefit from a potential Bitcoin price increase while limiting liquidation risk to the cryptocurrency on its balance sheet. Microstrategy has a unique approach to managing its finances. When Bitcoin prices rise, the company has more room to issue new bonds. Conversely, when crypto declines and leverage increases, the firm may issue new shares to reduce leverage, Bernstein noted. *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/bernstein-analysts-unveil-the-microstrategy-miracle-how-can-they-buy-so-much-bitcoin/
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