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Strategy Bitcoin investment mechanism analysis: financing purchase and high leverage operation
Gate News bot message, Patrick Bush and Matthew Sigel recently analyzed the Bitcoin investment strategy of Strategy (MSTR). The company has established a recursive holdings structure by acquiring Bitcoin through continuous financing.
In terms of investment products, MSTR common stock provides investors with direct Bitcoin exposure, while convertible bonds and preferred shares (STRK, STRF) incorporate options and yield characteristics.
According to the study, the company’s share price premium is based on three main factors: the market’s expectation that it will continue to increase its holdings of bitcoin, its advantages as an alternative to compliant investing, and the attractiveness of high volatility to speculative funds. The investment structure includes the characteristics of both return amplification and risk concentration.
Source: Wu says