Deconstructing the behavior and funding sources of buying BTC through MicroStrategy = Upgraded version of 'Grayscale + LUNA'.

MicroStrategy began buying BTC aggressively in 2020 and has invested more than $16.5 billion to date, as this article notes. MicroStrategy is funded primarily by convertible senior bonds for qualified institutional investors, and directly for equity issuances in the secondary market. This approach is similar to the way Grayscale and Luna raised money in the last round of Bull Market, only more robust and secure. This article is from the Golden Finance article, compiled and compiled by PANews. MicroStrategy Bond Interpretation: Is MicroStrategy Crazy Increase the Position BTC Safe? (Background added: Rich dad shouts $BTC1300 million!) Support Michael Saylor's prediction: Microstrategy is right) BTC breaks $80,000! BTC breaks $90,000! BTC breaks $95,000! BTC breaks $99,000! Obviously, BTC is bound to break the $100,000 mark soon. Common sense tells us that the direct reason for the sharp rise in prices is that someone is buying a lot of real money, after all, "Money Talks". In this round of encryptionBull Market, encryptionToken is seriously differentiated, and the two most prominent zones are BTC and Solana. Solana's rally was mainly driven by the influx of encryption players into Meme, while BTC's rally, buying funds mainly came from US BTC ETFs and some publicly traded companies especially MicroStrategy. In this article, we mainly follow MicroStrategy. Golden financial reporters spent an evening on November 21 looking through MicroStrategy's files submitted by MicroStrategy since 2021 on the SEC official website, and Depth dismantled MicroStrategy's purchase of BTC and the source of funds. It was concluded that MicroStrategy is an enhanced version of "Grayscale + Luna". Let's take a look at MicrosStrategy as a whole, then disassemble MicroStrategy's funding sources for buying BTC, and finally compare Grayscale and Luna. Below. MicroStrategy is not afraid of bulls and bears: spent more than $16 billion to firmly buy BTC MicroStrategy has implemented the BTC reserve strategy since September 2020, and has been firmly implementing the BTC reserve strategy without fear of bulls and bears for 4 years, such as buying BTC for more than $59,000 in April and November of the Bull Market round in 2021. MicroStrategy continues to buy BTC Golden financial reporter statistics found that as of November 22, 2024, MicroStrategy has spent a total of $16.58 billion to buy BTC, currently holding 331,000 BTC, holding nearly $33 billion in BTCMarket Cap. Since the success of the BTC ETF in January 2024, the BTC ETF has managed more than 1.24 million BTCs, the total asset value has exceeded $120 billion, and the total net capital inflow is about $30.3 billion. BTC ETFs are the investment targets of many investors, not from a single investor. As far as the eye can see, MicroStrategy is probably the single entity that spends the most to buy BTC. So the question is, where does so much of MicroStrategy's money to buy BTC come from? Golden financial reporters looked through MicroStrategy's report to the SEC, and its funds mainly came from two sources: convertible senior notes and market stock issuance (At-the-Market Equity Offerings). Among them, Convertible Senior Notes are for qualified institutional investors, and At-the-Market Equity Offerings are directly for the secondary market. Convertible Senior Notes: $7.26 billion Qualified Institutional Investors Below are MicroStrategy's notes from issuance since 2020, with the exception of issuance's $500 million senior secured debt in June 2021, the rest are convertible senior notes. Among them, on November 21, 2024, MicroStrategy's new $3 billion in convertible debt cash is ready to be used to buy BTC. Perhaps just in the last day or two, when MicroStrategy used this $3 billion to buy BTC, it was when BTC broke $100,000. Understand what Convertible Senior Notes are, and you'll find that it's a really good financial tool. A convertible senior note is a special type of debt security that contains Options that convert the note into a predetermined number of issuance shares. If the stock rises, it can be converted into a stock, and if the stock price is low, it can be repaid according to the debt. Moreover, senior convertible notes have priority over all other debt securities of the same organization, Issuance, and may be compensated on a priority basis. Therefore, it is a bond with high yield and guaranteed bottom. Importantly, convertible senior bonds are generally accompanied by mandatory redemption clauses. An issuance person may initiate a compulsory redemption after the prohibition period stipulated in the terms or when the early redemption clause is triggered. Before the prescribed redemption date, investors need to convert the convertible bonds into shares of the company, otherwise the issuance person has the right to force the redemption of the convertible bonds at the face value of the bonds plus the accrued interest price. In most cases, investors actively convert to stocks. In the case of the 2025 Convertible Notes that MicroStrategy has redeemed, the expiration date of the 2025 Convertible Notes is December 15, 2025. However, MicroStrategy issued an announcement on June 13, 2024, requiring 2025 Convertible Notes holders to elect to convert their Notes at the applicable conversion rate of 2.5126 MicroStrategy Class A common shares (reflecting the conversion price of $397.99 per share) by 5:00 p.m. New York time on July 11, 2024. Otherwise, MicroStrategy will force the redemption of all outstanding notes on July 15 at a redemption price equal to principal + accrued unpaid interest. With MicroStrategy's stock price around $1,300 on the day (MicroStrategy completed a 1:10 stock split on August 8, and the price of $1,300 was the pre-split price), it is clear that creditors will choose to convert debt into stock. Creditors take...