In this episode, Richard Byworth joins the show to discuss MicroStrategy’s convertible bond strategy, the biggest MicroStrategy misconceptions, and why he thinks the premium to NAV should expand over time. We also delve into MicroStrategy's concept of Bitcoin Yield, the risks and opportunities of Saylor’s strategy, and much more. Enjoy!
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Timestamps:
(00:00) Introduction
(01:50) Richard Byworth And Convertible Bonds
(09:45) MicroStrategy’s Convertible Bond Strategy
(15:28) Accretive Dilution & The Value Of A Convertible Bond
(21:13) Breaking Down The Convertible Bond Trade
(27:07) Ads
(28:42) Risks & Opportunities In MicroStrategy’s Strategy
(36:55) Bitcoin Yield & Bitcoin Per Share
(38:28) Leveraged Upside And Downside
(42:47) MicroStrategy Index Inclusion
(44:06) Biggest MicroStrategy Misconceptions
(49:09) Impact Of Levered MSTR ETFs
(51:52) The Changing Market Paradigm
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Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
