50 sats \ 1 reply \ @TheBTCManual 2 Nov 2023 \ on: MicroStrategy Announces Q3 2023 Financial Results; now Holds 158K BTC in Total bitcoin
If MSTR manages to maintain its cash flow and service their loans this strategy could go down in history as one of the greatest, while I think they are playing it quite close to the chest and there's no need to be as aggressive considering how much they've already acquired, they are playing the game of stacking on the next level
If Bitcoin does have another run up, their stocks become attractive, they can sell that stock at a multiple to cover their fiat loans along with their usual cash flow from operations, bar something crazy happening, I think MSTR will hit 200k BTC
Definitely agree. For info, I wrote the article below looking at the exact nature of each tranche of debt.
At the time it didn't look great for them but they still had plenty of time - the main danger was rolling over each other tranche of debt and ideally not selling bitcoin at a loss if they were unable to do so (or the new borrowing terms could have been really punishing).
I think we now have our answer though since - they are able to simply issue new equity and could in theory use this to pay off debt. Or buy even more bitcoin...
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