Brazil's Real Hits All-Time Low After Lula's Spending Cuts Disappoint (youtube.com)
Microstrategy around 5 years ago transformed the company, by using its balance sheet, they had a lot of cash on hand, to buy bitcoin. It's software business had been languishing. As Bitcoin has gone up and Microstrategy (as a Bitcoin holder) has gone up, Microstrategy had the opportunity to issue convertible bonds and debt to acquire more Bitcoin. What's novel is that Microtrategy has been able to issue these debt securities for almost zero interest. So they've been able to fund this without having to pay for the interest expense, basically. They've created a lot of network value, one of the biggest holders of Bitcoin, and one day might become the second largest holder after the US government. And they're doing this with the ability to borrow at a very low cost. ‘Why are bond holders buying these bonds?’ Microstrategy is offering, for the first time, that someone can put $1b to work in the bond world to own a bond that has exposure to Bitcoin. These bonds have been the best performing bonds. So these bond managers have outperformed by buying tipical corporate bonds but with Bitcoin exposure. ... Some day when Microstrategy has accumulated enough Bitcoin, they can do interesting things with it, like lending Bitcoin or help some financial system secure Bitcoin as sort of a anchor of that network. That large holding can be tapped. Tom Lee's description.