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Vladimir 🎩
@xbtvladimir
Convertible bonds are debt instruments that pay interest but can also be converted into company stock at a set price. They’re attractive because investors get interest and potential stock upside. Michael Saylor issued convertible bonds at zero interest rate to raise billions. He used the funds to buy Bitcoin, betting its price would rise over time. Investors were interested because: 1. They can have yield at the end of term 2. They could convert the bonds into MicroStrategy stock if the stock price (tied to Bitcoin’s success) increased.
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