MicroStrategy knows no stopping. The company intends to invest a further Bitcoin to the value of a billion dollars in Bitcoin and lends itself once again, money. How far is Michael Saylor can go?
He has done it again. Last Wednesday, the 17th. In February we received the news that MicroStrategy will invest, under the leadership of charismatic CEO Michael Saylor once again in Bitcoin. After the company had already begun in the summer of 2020 on its Cash reserves in Bitcoin exchange, is the latest foreign exchange: Buy on credit.
The company started in December of last year in order to issue bonds, so-called Senior Convertible Notes. The proceeds from the prescriptions should be used in accordance with the prospectus in BTC, in order to increase the Position, so on.
Those who thought that the MicroStrategy executives are satisfied with it, was wrong. Because according to a press release show was set to be the first Begabe the Notes with a volume of 400 million US dollars (USD) is still relatively low. In the latest of securities, the company has a Funding target of one billion US dollars.
The pikanteste Detail is, however, interest on the securities. The is in fact equal to zero.
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You have to say it very clearly: What is Michael Saylor does here, is an orchestrated attack on the U.S. Dollar as the world reserve currency. Because of the loose monetary policy of the Central banks with a view on the COVID pandemic in March 2020 on the day, there are Fiat money is currently at zero cost. And makes use of the Business Intelligence company which will go on the stock market as a kind of Belter Bitcoin hedge Fund behaves.
The base money supply of the US dollar has doubled since the beginning of the pandemic, for example, almost, as shown in the following graphic.
The result of this unprecedented wave of Liquidity include low interest rates. Ten-year German government bonds are subject to interest for an hour with -0,34 percent. What was once unthinkable is today’s reality: he Who lends money is not rewarded for the waiver of liquidity around, but gets back guaranteed less.
Under this point of view, the zero-interest rate of micro Strategys Senior Notes is almost a good Deal. The bottom line Saylor is doing everything they can to remove the US Dollar from his books.
It is obvious that companies in the US Dollar, which can become a guarantee of value in something should exchange the win guaranteed the value of
the MicroStrategy said CEO to Yahoo Finance.
Bonds sell-off would be bullishes Signal for Bitcoin
Now corporate bonds are generally riskier than government bonds. Finally, must submit to a private company, in contrast to the governments of the rules of the market and have no Central Bank-a Partner with unlimited liquidity to the side.
Under this point of view, the Begabe of the bonds is not only a bold step on the part of Michael Saylors. The company should be to issue a volume of one billion US dollars to the man, this is an extremely bullishes Signal for Bitcoin.
To understand this, one must know that the Convertible Notes, according to the prospectus per piece against 0.6981 MicroStrategy shares (ISIN: US5949724083/ Ticker: MSTR) exchange. The par value per Senior Note is 1,000 USD. In the case of a MSTR-rate of 941 USD which translates into a premium of 52 percent.
In other words: those Who invest now in the MSTR bonds, makes a Profit when the share price of the company increases to a minimum of 52 percent. Because the share price of the course developed is proportional to the BTC, investors clearly on a further course of crypto-currency increase.
For the time being, investors acknowledge the project but negative. Since the announcement of the bond issue MSTR listed with 5 percent in the Minus.
With the further lever Michael Saylor leads his company in the Bitcoin Standard. The CEO had already expressed several times that he considers to Fiat cash reserves, not as an asset, but as a liability. It is also interesting that the strategy seeks to make its Bitcoin-accumulation programs not Hidden. Rather, Saylor is fast becoming a kind of figurehead in the Bitcoin Space. Accordingly, it often occurs for economy consignments, such as at CNBC,.
That MicroStrategy is to continue to put pressure on the boiler of the already-hot Bitcoin market, was at the beginning of February to the Investment of Tesla watch. The US car maker had invested a total of $ 1.5 billion in Bitcoin.
If now, more and more companies to follow the examples of MicroStrategy and Tesla, has risen to the strategy. Finally, the First Mover could accumulate rather, BTC to lower rates and benefit exponentially from the course to the other Bitcoin-specific pronouncements climbs result.