Episode Details
Title | Convertible Bond Expert Breaks Down Why MicroStrategy Is Soaring | Richard Byworth |
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Date | 12/10/2024 |
Podcast | On The Margin ↗ |
Key Insights
Bullish:
- 🟢 $MSTR - MicroStrategy is misunderstood by the market, employing a unique strategy of leveraging its volatile stock to issue bonds and acquire more Bitcoin. This approach, while counterintuitive, is accreting value to the balance sheet in a way that traditional financial markets are struggling to comprehend.
- “I think MicroStrategy is is woefully misunderstood by the majority of of people.” - Richard (2:42)
- “What Saylor's realized is because his stock is so volatile, it allows him to price bonds on a zero coupon but with a massive premium.” - Richard (10:25)
- “The dilution is accretive, and this is what everybody in financial markets is really struggling to get their head around.” - Richard (14:32)
- “He's leveraging the capital markets to get even more Bitcoin. And if you take a step back and go, okay, if I could myself issue future equity in my performance, Right? Could I and use that to buy Bitcoin. Would I want to do that today rather than wait until I've earned that money? Yeah. Definitely.” - Richard (35:57)
- “This is something that no one has ever seen before, so you have to think about it in slightly different ways and try to understand what is really happening here. And it is accreting continuous value to the balance sheet, to the asset base. Therefore, in a way, it's a type of earnings for the company.” - Richard (0:00)
- 🟢 $METAPLANET - 🔒
Bearish:
- 🔻 $LEVERAGED - 🔒