One, thanks for the explanation so I didn't have to run through another search on what this over means.
But, the question of Tytanowy Janusz still stands, they are basically shifting the risks, but at the same time this is not a bulletproof way of doing so, if Micro fails so will their hedging as there will be no money to pay not even the main, forget about the interest.
This is indeed an all-in kind of bet. As per the announcement, this offering is covered only by "Microstrategy" and its holding companies.
The 90K+ BTC that they hold will now be "Macrostrategy LLC". So, the bitcoins are safe. Microstrategy is offering itself as the collateral to raise this amount and, as far as the announcement implies, buy more bitcoin with the funds. This is probably the biggest known case of BTFD. The offering ends on June 14th and only then we'll know how it performed.
Macrostrategy's BTC holdings now have an average price of 23985 USD. (Which i guess is now the biggest support, Bitcoin traders would know better). With BTC inching back to above 35K, they are still in a comfortable position. Its the investors who need to decide whether they are okay taking this bet. Its all legal as far as regulations go.
Microstrategy had earlier raised 1.05 Billion USD with a similar offering in Feb 21. Mr. Saylor has bet pretty big. The investors are buying up the offerings which means he is not alone.
THREAD HERE
