🏦Have you ever wondered what strategy Michael Saylor has adopted? Saylor, executive director of MicroStrategy, has been using an innovative strategy to increase the value of the company for years: issuing debt to buy Bitcoin. MicroStrategy, founded in the 1980s, often recorded losses until, in 2020, it began financing the purchase of BTC through convertible bonds.

Key points of the strategy:
✅Issuance of convertible bonds: bonds with a five-year maturity and rates lower than 1%.
✅Purchase of Bitcoin: use of the capital raised to buy BTC, betting on its future appreciation.
✅Increase in share value: if BTC rises, the value of MicroStrategy shares also increases in leverage (over time, however, the growth will be lower because the emissions will dilute the price).

Why buy bonds and not BTC or Microstrategy stock?

💰At the maturity of the bonds, Microstrategy should always have liquidity available to repay the loans. If Saylor's average carrying price is much higher than the price of BTC, the company could have difficulty repaying its debts if it does not have available cash. At that point he should start selling BTC, triggering further price declines and distrust in the market.

🖤🦢Remember though: even in the event of a black swan, BTC does not depend on any company in the world. Bearish volatility will be short-term and bear markets will always be buying opportunities!