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21 sats \ 1 reply \ @343pg 29 Dec 2023 \ parent \ on: Adam Back opinion on MSTR strategy on BTC bitcoin
It’s interesting isn’t it. He raised debt to buy bitcoin at the time it was insanely cheap to do so, but recently has been selling equity, seemingly as long as it doesn’t dilute btc held per share.
I suspect there’s a third way also once the share price falls too low relative to btc to do what they are currently doing. They could even buy back their own shares, start to pay down the debt if it was hard to refinance?
For sure and as long as you generating cash flow you can reduce your debt obligations or like you say buy back your stock and once you get to a level where you find their is appetite for equity dilution or interest rates are favorable you can rinse and repeat, really all leveraged plays on the companies future cash flows + fiat devaluation
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