Pro
The Health of MicroStrategy's Bitcoin Bet
Key Questions:
- What is the structuring of MSTR’s debt?
- Does MSTR have a Bitcoin liquidation price? If so, what is it?
- Is the underlying software business profitable enough to service the debt?
- How do GBTC and MSTR compare to one another as a BTC investment proxy?
Amidst the carnage throughout the crypto market this year, one of the few “bull market heroes” that has yet to be slain is Michael Saylor and Microstrategy. Microstrategy became well-known for its massive Bitcoin bet made not only with the cash on its balance sheet but also with debt. Microstrategy currently holds 130k BTC worth roughly $2.08B. There has been an increasing level of speculation around Microstrategy’s debt structuring and whether their software business is profitable enough to service the debt.
Microstrategy’s Debt Profile
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Sam leads coverage on Ethereum, L2s, Aave, Compound, as well as NFTs and gaming. Previously worked on a hedge desk at UGC.
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