TECH - Bitcoin Rally Triggers MicroStrategy's Bond Dilemma Skyrockets Stock Value | Benzinga
MicroStrategy Inc (NASDAQ:MSTR) is facing a challenging situation as Bitcoin’s surge boosts both its shares and convertible bonds, making refinancing these bonds 280% more expensive.
The $650 million convertible bonds, due in 2025, are now trading at about 3.8 times their par value, significantly above the conversion price of $397.99, despite offering a mere 0.75% coupon.
MicroStrategy’s stock soared by approximately 390% since issuing the debt in late 2020, pushing the shares to close at $1,512.99 each Monday, Bloomberg reports.
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This impressive stock performance positions the convertible ...