I must say I adore Chief Executive Officer Michael Saylor and think he is brilliant and a wonderful communicator.
We all know the drill- they have taken out a 650m & a 950m loan at rates under .01% and have been buying bitcoin since sub 12K and then using the capital to pump it up. Which in turn continues to pump-up their own underlying assets which are bitcoins that were acquired at various levels from 10k on up. They then use the new equity from all the underlying being pumped up and then take out more loans and do it over and over. Rinse repeat. This in essence lets them have a position essentially short the dollar and long bitcoin. Whats funny is people act like this is risky, yet if you think of how much traders are paying using margin (I do not recommend using margin in this manner if you want leverage run option spreads) traders are paying far more in margin interest then 1%.
"MicroStrategy Inc. boosted its convertible debt sale to buy Bitcoin by nearly half and cut the coupon to 0%, making it virtually a straight bet on the price of world’s largest cryptocurrency.
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