Five tricks to using investor funds to buy bitcoin
Michael Saylor has made no secret of his bitcoin (BTC)-accumulating strategy. By issuing bonds and securities like ATMs, Strike, Strife, Stride, Saylor wants his fans to believe in his ability to accomplish accretive dilution . A type of financial alchemy that involves taking out loans, diluting equity holders, and encumbering future cash flows, MicroStrategy (MSTR) investors believe that demand for volatility products from bond and arbitrage traders supposedly funds Saylor’s issuance of securities. Because he’s diluted shareholders by less than $1 to buy each additional $1 of BTC, they believe that he could continue to innovate and increase their dilution-adjusted BTC holdings per share over time. However, Saylor’s success in selling these securities at premium prices has attracted competition in the form of new companies. These entrants have entirely unique iterations on accretive dilution . Nearly doubling in the past six months, a new cohort of over 130 BTC t...