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MSTR to buy 84 Billion more Bitcoin

MicroStrategy's Q3 earnings call delivered an intense, fast-paced showcase of its $84B capital strategy, signaling a new era of Bitcoin-based financial products.

MicroStrategy’s Q3 2024 earnings call wasn't just another corporate update—it was a deep dive into a visionary Bitcoin-driven capital plan, led by top executives, including Michael Saylor. Over 2.5 hours, they outlined an ambitious $84 billion financing roadmap, combining equity (ATM) and fixed income instruments to both de-risk and leverage the company’s Bitcoin-heavy balance sheet.

A key part of this strategy involves new products like Strike and Strife, innovative fixed-income instruments that are perpetual and Bitcoin-backed. Strife, in particular, is structured for long-term holders, offering a 10% dividend with low volatility and no equity dilution, making it highly attractive for traditional investors wary of crypto.

Slides from the presentation highlighted why MicroStrategy trades at a premium to Bitcoin NAV—thanks to brand strength, financial engineering, and an expanding ecosystem of derivative products. The team also introduced a Bitcoin credit rating model to show how overcollateralization reduces default risk, pushing these instruments into "investment-grade" territory under various BTC price and volatility scenarios.

If Bitcoin grows at even 10–30% annually, these instruments—currently undervalued—may offer high yield with minimal risk. Compared to high-risk traditional debt (like PG&E's), MicroStrategy's offerings are positioned as some of the safest, best-yielding instruments in the market, provided the market accepts Bitcoin’s long-term value proposition.

This wasn't just an earnings call—it was a financial masterclass in how to structure the future of Bitcoin-powered corporate finance.

Author

Jacob Lazurek

Jacob Lazurek

Coinpaprika

In the dynamic world of technology and cryptocurrencies, my career trajectory has been deeply rooted in continuous exploration and effective communication.

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