Strategy Raises $2B for Bitcoin—Is It Taking on Too Much Debt?

The strategy again makes waves with its aggressive Bitcoin strategy. The company plans to remove $ 2 billion thanks to a private sale of convertible bonds, which should mature in 2030. These obligations will not pay regular interest, but investors can choose to convert them into class A shares or cash or in strategy. With this decision, the strategy aims to collect $ 1.9 billion, most of which will buy more bitcoin and finance general operations. Meanwhile, Strategy shares have jumped 372% in the past year, ranking among the most efficient on the American market.

The investor raises doubts about debt and Bitcoin holders

Although the strategy plan seems daring, the providential investor well known Jason Calacanis is not convinced. He argues that the company should be valued lower than its Bitcoin holdings because of its growing debt. Another problem he underlines is that shareholders do not really control the company’s bitcoin, which raises concerns about asset safety. He also wonders if CEO Michael Saylor Michael Saylor Michael J. Saylor is an enthusiastic blockchain influencer and a splendid leader. He is an entrepreneur and a business manager who has co-founded Microstrategy, he is president and CEO of the same microstrategy. He is a vocal defender of Bitcoin. It is highly qualified in company software and also has a rich knowledge of many areas, including analysis, data warehouses, leadership, Saas, management, cloud computing, startups, professional services, corporate architecture, mobile devices and many others. Location: United States Education: He graduated in MIT in 1987 with a double major in aeronautics, science, technology and society. Experience: he was executive president and founder at Microstrategy in August 2022 – Present, he was also president, CEO and founder of microstrategy from October 1989 to August 2022 Skills: Buisness Intelligence and Data Warehousing Worth: The net value of Saylor is About $ 4.6 billion, according to Forbes. He also organized 2.4 million actions from Microstrategy Events Astend: Bitcoin 2024 Nashville and BTC Prague [email protected] EntrepreneurCrypto and blockchain expertAuthor is too paid for Bitcoin, indicating that each purchasing strategy means that someone else thinks that their money is better spent elsewhere.

Could the stock of the strategy still increase?

Despite his concerns, Calacanis does not bet against the strategy. He admits that the actions of the company could still climb in the short term. Until now, the figures are behind – Strategy shares have increased by 1.6% Thursday and have climbed 352% over the past year, by far the gain of 23.5% of the S&P 500. Despite a drop of 30% compared to its November summit, there are more than 700% in three years.

The sale of $ 2 billion bonds is only part of a much larger plan. The ultimate goal of the strategy is to raise $ 21 billion over the next three years thanks to various financial instruments, including shares, bonds and privileged actions. However, the question of whether the sale of bonds will take place depends on market conditions. If things do not go as planned, the company may have to rethink its strategy.

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Does the strategy take too many risks?

The company recently organized a webinar to explain its plan to institutional investors, but questions remain. Can the strategy continue to buy bitcoin at this rate without encountering liquidity problems? Will its debt become a long-term problem?

Meanwhile, Calacanis continues to stir the debate in the world of cryptography. He recently made the headlines by calling XRP “centralized” security, adding to his list of controversial sockets. As the strategy is advancing, only time will tell us if its heavy approach to bitcoin will be chargeable or become an expensive bet.

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