The real trick Saylor has figured out is the combination of 3 things (a) convertible bonds (b) ATM equity sales, (c) Accretion. Its that specific combination that seems like a magic money machine.
the bonds are 5 year + 0%. So at worse, Saylor only needs to return their premium in 5 years. This means BTC would need to be lower than todays prices in 5 years for their to be concern
having said that, Saylor can still use ATM equity sales to payoff bond holders (ie. in 5 years he could just release more shares and pay off bond holders, its not 'mandated' that he sells his bitcoin).
the most critical feature of his engine, is that is accretion, not dilution. He has managed to continually add bitcoin per share. For example, if you owned 1 share of MSTR in Feb 2024, that had claim to .00087 BTC at that time....that same share now has claim to .0015 BTC - so you gained 72% BTC holdings by doing nothing!
MSTR is effectively using fiat to mine bitcoin. Its a far more efficient "bitcoin mining engine" then a physical miner (which is now why mining companies are transitioning to this strategy like Hut8, etc).
The real trick Saylor has figured out is the combination of 3 things (a) convertible bonds (b) ATM equity sales, (c) Accretion. Its that specific combination that seems like a magic money machine.
MSTR is effectively using fiat to mine bitcoin. Its a far more efficient "bitcoin mining engine" then a physical miner (which is now why mining companies are transitioning to this strategy like Hut8, etc).