Microstrategy announced… something.

MicroStrategy has announced that it will offer $400 million in senior secured notes to buy more #bitcoin. “MicroStrategy’s existing approximately 92,079 bitcoins will be held by a newly formed subsidiary, MacroStrategy LLC,” per the announcement.


I asked on bitcoin twitter what it was and got an explanation:

I had to ask a friend who’s in finance.

  • It’s non-convertible debt.
  • “Senior” debt gets paid back before other obligations if corp goes south (i.e. less risk).
  • Rate is not priced yet because they’re shopping it around. Strong demand will equal lower interest rate.

Now you get it?

Me neither.

It’s basically more of borrowing fiat to buy more bitcoin. Basically a call option that in 7 years bitcoin will be worth more than 33000 dollars. He’ll pay an interest in a p2p corporate loan, I think. And Senior means he has to pay it first, no fooling around with going bankrupt etc.

Maybe it’s a good idea to go long on bitcoin too.



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