MicroStrategy Unveils $84 Billion Bitcoin Financing Plan
MicroStrategy's Q3 2024 earnings call detailed an $84 billion financing plan focused on Bitcoin. Key points include:
- Combining equity and fixed income instruments to manage the company's Bitcoin-heavy balance sheet
- Introduction of new products, Strike and Strife, which are perpetual and Bitcoin-backed
- Strife offers a 10% dividend with low volatility, appealing to traditional investors
- MicroStrategy trades at a premium to Bitcoin NAV due to brand strength and financial engineering
- A Bitcoin credit rating model indicates reduced default risk through overcollateralization
- If Bitcoin grows 10–30% annually, these undervalued instruments may yield high returns with low risk
- Positioned as safer, higher-yielding options compared to traditional high-risk debt
This presentation outlined innovative approaches to structuring corporate finance around Bitcoin.