"MicroStrategy" Is it a "Seongji" or "Babel Top" built up with BTC..

🏦"MicroStrategy" Is it a "Seongji" or "Babel Top" built up with BTC..
(Microstrategy, ‘Holy Place’ or a ‘Tower of Babel’ built with BTC?!)

Based on a single institution (excluding ETF operators), the place with the most BTC is "microstrategy," with a whopping 244,800 BTC (flat price of $38,550) as of September

The main basis for the company to purchase 1.17% of BTC's total supply is "cash" and "converting bonds." In particular, convertible bonds have raised $3.9 billion for BTC purchases over the past three and a half years (20.12 to 24.6 June), and are currently collecting another $8.75 billion, so it is safe to say that the company's fate is with BTC

For reference, 'converting bonds' are 'bonds that can be converted into the company's stock at maturity according to certain conditions'. In other words, investors can make a profit from stocks if the company's stock price rises even more at maturity, or if they don't, they can get it back in cash. In fact, since the microstrategy stock price has risen more than 10 times compared to the time of BTC purchase for the first time, investors can think of it as a corporate bond worth betting on

However, every problem comes out the moment it rises to the surface. According to some, the following reasons may arise for investing in corporate-backed BTC debt, represented by microstrategy's convertible bonds
- MicroStrategy's Earnings (Tax Excluded) Estimated At Approximately $82 Million
- On the other hand, expenditures have already been revealed, but interest paid on convertible bonds, etc., is estimated at $45 million and $20 million in taxes
- The corporation that actually holds BTC is not microstrategy, but macrostrategy, which is a separate corporation
- So MicroStrategy Shareholders And Convertible Bond Investors Do Not Have Direct Claims For BTC That MacroStrategy Holds

In summary, 1) MicroStrategy can maintain and succeed in its all-time BTC debt investment only when sufficient cash flow is maintained. 2) If the debt investment fails, shareholders and convertible bond investors who invest in BTC can only claim shares that have plummeted, and 3) BTC held by MacroStrategy, a separate corporation, can be a pie in the sky

One of the reasons for this argument is that MicroStrategy has been caught doing a "converting bond revolving." On Sept. 13, a few days after MicroStrategy (the place where it writes down and reads macrostrategy) sold 18,300 BTC, it said it would issue $8.75 billion worth of convertible bonds (0.625% annual interest due in 2028)

However, it is said that $500 million of the raised amount is used for the existing convertible bond situation and the rest is used for the sale of BTC. In other words, more than half of the new convertible bond issuance is used to block the return of existing convertible bonds, and the remaining GIFs are all invested in another BTC debt


Personally, I agree with Michael Saylor's opinion that "BTC is the best strategic asset and the ultimate sound money." However, in addition to the future risk of selling BTC by microstrategy, or macrostrategy, the unreasonable investment structure risk of microstrategy has now passed the singularity

Another risk for MicroStrategy is that not a few global institutional funds are linked to the company's investment structure, including Korea's National Pension Service, Norway's sovereign wealth fund, and Swiss central bank reserves, which purchased the company's shares for indirect investment in BTC;

In conclusion, as a pioneer of BTC institutional investment, other institutions around the world should consider the credit for stimulating BTC purchases, but their excessive BTC debt investment can put a burden on the BTC market as well as related individual and institutional investors

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