Michael Saylor’s Strategy (MSTR) is back in the spotlight – and this time, it’s the convertible bonds stealing the show. Thanks to Bitcoin holding near all-time highs and MSTR stock bouncing back toward $450, five out of six of Strategy’s bond offerings are now deep in the money. 💰
Let’s break it down:
📈 $BNB
MSTR has issued $8.2B in convertible debt – basically loans that can turn into shares if the stock price rises enough.
🔥 With MSTR stock flying, those bonds are now worth $13.4B – that’s a juicy $5.2B market premium for bondholders.
💡 Only the 2029 note (convertible at $672.40) is still out of range… for now.
These convertibles were crazy cheap to issue (avg. interest rate: 0.42%) and fueled the company's legendary Bitcoin buying spree. Now, investors are sitting on massive paper profits as the stock climbs and $BTC stays strong.
But wait – there’s a twist. 📉
Options traders aren’t feeling super hyped right now. Implied volatility has dropped, trading volume is down, and sentiment is pretty neutral. Translation? might find it harder to issue new debt as cheaply as before.
🚨 So what’s next?
If MSTR wants to raise more cash through convertibles, it might need to offer better terms (like lower conversion prices), which could dilute shareholders.
TL;DR: MSTR's bold Bitcoin play is printing big gains on its bonds – but don’t expect another convertible sale party unless market enthusiasm heats up again.
👉 Are you riding the MSTR wave? Or sitting on the sidelines waiting for a pullback?
