Found out this week that MSTR has borrowed over $4 billion at an average interest rate of 0.8%
THIS IS AN INSANELY CHEAP RATE!
Indeed it's the primary driver of MSTR equity value growth in my mind
And a good insight into why a public market equity like this can generate returns in excess of Bitcoin
Imagine if the retail market was able to borrow at sub 1%...!
I'd love that interest rate
it was also a low-cap stock, it is a simple strategy that works. the important part is to not get too greedy
Correct me if I'm wrong, but the hope of the lenders is that the bonds never mature - rendering the interest rate irrelevant. The whole point is that they want shares; not their money back.
Bingo. They convert their bonds. Point I was really making is that the public markets offer benefits that a retail investor can only dream of
MSTR Being a Cantillionaire is nice, eh?