ChainCatcher news, Strategy founder Michael Saylor posted on the X platform that the main component of the ETF BMAX is Strategy's convertible bonds.ChainCatcher previously reported that Strategy founder Michael Saylor introduced the new ETF BMAX on his personal social media platform, which is the first ETF to provide opportunities for retail investors and investment advisors to invest in convertible bonds issued by companies that incorporate Bitcoin into their financial strategies.

ChainCatcher news, Strategy founder Michael Saylor posted on his personal social media platform introducing the new ETF BMAX, which is the first ETF to provide opportunities for retail investors and investment advisors to invest in convertible bonds issued by companies that incorporate Bitcoin into their financial strategies.ChainCatcher previously reported, according to BusinessInsider, asset management company REX Financial announced the launch of the Bitcoin Corporate Treasury Convertible Bond ETF (REX Bitcoin Corporate Treasury Convertible Bond ETF), which is listed on NASDAQ under the ticker BMAX. It is primarily aimed at retail investors and investment advisors and supports convertible bonds issued by companies that incorporate Bitcoin into their financial strategies.

ChainCatcher news, according to CoinDesk, Strategy (formerly MIcroStrategy) disclosed data on platform X showing that Strategy has become the largest issuer of convertible bonds in the U.S. market this year, with a market share of 30%.So far this year, the company has issued $2 billion in convertible bonds.

ChainCatcher news, reported by Decrypt, based on analysis from The Kobeissi Letter, although Strategy's stock price fell over 11% in early trading on Tuesday, raising concerns about potential forced liquidation due to Bitcoin, the likelihood of this scenario occurring is low due to structural safeguards.Strategy primarily raises funds through convertible bonds, such as the $2 billion zero-coupon bond maturing in 2030, with an initial conversion price of $433.43 per share, allowing it to obtain capital without immediately diluting shareholder equity. As of now, Strategy holds approximately 499,096 BTC, valued at about $4.44 billion, while its $8.2 billion debt is highly dependent on Bitcoin's performance.This week's significant correction in the crypto market has led to a $3.7 billion evaporation in the market value of Strategy's Bitcoin holdings. Although there is currently no immediate risk, Polymath co-founder Trevor Koverko pointed out that if the market remains sluggish for an extended period, Strategy's collateral requirements and refinancing capabilities will be tested.Additionally, Strategy co-founder and chairman Michael Saylor holds 46.8% of the voting rights, and analysts believe that shareholder resolutions are nearly impossible to pass without his consent, thereby reducing the likelihood of forced selling due to bankruptcy or shareholder resolutions. The Kobeissi Letter also noted that even if the BTC price drops 50% to $33,000, Strategy's assets would still exceed its debts by over 100%, meaning that unless a "black swan" event occurs, forced liquidation is unlikely before the debt matures (earliest in 2028).

ChainCatcher news, according to The Block, Strategy Company (formerly MicroStrategy) plans to issue $2 billion zero-interest convertible senior bonds for general corporate purposes, including the acquisition of Bitcoin. These bonds will mature on March 1, 2030, and can be settled in cash, Class A common stock, or a combination of both. The company also granted initial purchasers an option to buy an additional $300 million in bonds.Previously, Strategy issued a profit warning in its 10-K filing, primarily due to a $1.79 billion impairment loss on digital assets. The company warned that a significant decline in the market value of Bitcoin could affect its ability to repay debts and liquidity, forcing it to sell Bitcoin at unfavorable prices.In 2024, Strategy acquired approximately 258,320 BTC and currently holds 478,740 BTC, valued at over $46 billion. The company stated that it may rely on equity or debt financing to meet its financial obligations in the future, with success depending on the market value of Bitcoin.

ChainCatcher news, according to foxaraby, MicroStrategy is issuing stock or zero-coupon debt backed by a small reserve of Bitcoin in order to purchase a large amount of Bitcoin through simple arbitrage. The company announced in October that it plans to raise $42 billion over the next three years using these methods and is accelerating towards this goal.Bernstein analysts believe that "MicroStrategy is playing a leveraged game with Bitcoin." The analysts noted that the longer debt maturities provide the company with some buffer against immediate repayment or Bitcoin price fluctuations. Furthermore, even if MicroStrategy has to issue stock to repay convertible bonds, the dilution effect of these stocks on the company's equity is limited. "MicroStrategy is increasingly relying on issuing stock to buy Bitcoin, but when it opts for convertible bonds, bond purchasers can gain the option to convert them into company stock at a certain price, which is almost equivalent to a call option."

ChainCatcher news, MicroStrategy co-founder and chairman Michael Saylor stated that once the current fundraising plan is exhausted, the company will shift from a leveraged Bitcoin proxy plan to a more focused approach on fixed-income securities to raise funds for purchasing cryptocurrencies.When asked how he expects to fund future cryptocurrency purchases, Saylor expressed this preference during an interview. So far, MicroStrategy has utilized a combination of new stock and convertible bond sales to fund purchases, the latter of which has provided returns to shareholders as its stock price has risen to levels that can be converted into shares.Saylor said, "We have $7.2 billion in convertible bonds, but $4 billion of that is essentially equity, trading through exercise prices and call prices, with a delta of about 100%, looking like equity. We want to go back and build smarter leverage to benefit our common stock shareholders."He indicated that the company uses regulated exchanges like Coinbase to purchase Bitcoin. MicroStrategy's stock price has risen about 500% this year, far exceeding Bitcoin's approximately 150% increase.Hedge funds have been looking for its fixed-income securities to implement convertible arbitrage strategies, buying bonds and shorting stocks, essentially betting on the volatility of the underlying stock. This demand has driven MicroStrategy to issue $6.2 billion in convertible bonds this year.

ChainCatcher news, according to Protos, market rumors suggest that MicroStrategy (MSTR) may enter a lock-up period in January 2025, during which it will suspend raising funds to purchase Bitcoin through "at-the-market" (ATM) stock and convertible bond issuances. This information comes from a leak by a venture capitalist, stating that Executive Chairman Michael Saylor "will be in a lock-up period throughout January and will not be able to issue new convertible bonds to purchase Bitcoin."Although the SEC has not explicitly prohibited insider trading during the end of the quarter and financial report release periods, many companies voluntarily implement a lock-up period of 2 weeks to 1 month to avoid suspicions of insider trading. MicroStrategy plans to release its financial report on February 5, 2025, and will join the Nasdaq 100 index on December 23.There are various opinions in the market regarding the specific timing of the lock-up period: some believe it will be a full month, while others predict it will start on January 14 for 30 days. Currently, MicroStrategy has not officially responded to these rumors.

ChainCatcher news, according to Bloomberg, due to Donald Trump's choice of a cryptocurrency-friendly financier as the head of the U.S. top financial regulatory agency, the rise of cryptocurrencies has made a few companies that mimic MicroStrategy's convertible bond sale strategy winners. These companies have followed MicroStrategy Inc.'s strategy of raising funds through the sale of convertible bonds to purchase Bitcoin.Investors have flocked to companies connected to the industry, opening the floodgates for financing. The $6.2 billion convertible bonds issued by MicroStrategy this year are just the beginning, as part of its latest plan to raise $21 billion through fixed-income issuance. Other companies have also followed this trend, with MARA Holdings Inc. selling over $2 billion in assets (also to purchase Bitcoin), while Core Scientific Inc. has raised over $1 billion so far this year.

ChainCatcher news, since June of this year, seven publicly listed Bitcoin mining companies have raised a total of $5.2 billion through convertible bonds. Of this, 70% (i.e., $3.6 billion) was raised in the past four weeks.MARA and Core Scientific have raised over $2.4 billion through zero-coupon convertible bonds in recent weeks, with MARA alone raising $1.85 billion. The conversion prices for both companies are about 40% higher than the average stock price at the time of issuance.

ChainCatcher news, Sydney-based Bitcoin mining company IREN announced plans to raise $400 million through the issuance of convertible bonds (coupon rate of 3.25%, conversion premium of 30%), an increase from the previously announced total principal amount of $300 million. The issuance and sale of these bonds are scheduled to settle on December 6, 2024, subject to customary closing conditions. Additionally, IREN stated its intention to expand its Bitcoin mining capacity to 50 EH/s by the first half of 2025.

According to ChainCatcher news reported by Decrypt, Bitcoin mining company Marathon Digital Holdings (MARA) is issuing $850 million in convertible notes, with an option to expand to $1 billion, as part of a plan to repurchase existing debt, acquire Bitcoin, and fund corporate plans during the cryptocurrency market recovery.The company plans to use $199 million of the expected net proceeds of $833 million from this sale to repurchase its existing $212 million 2026 convertible notes. Marathon Digital stated that the remaining portion will be used to purchase more Bitcoin and for general corporate purposes, including working capital, strategic acquisitions, asset expansion, and repaying other debts.

ChainCatcher news, Bitdeer Technologies Group announced its plan to publicly issue $150 million in convertible notes, maturing on August 15, 2029, to expand its data centers and develop ASIC-based mining equipment.It is reported that these notes are the company's senior unsecured debt, with an annual interest rate of 8.5%, unless converted, redeemed, or repurchased early.

According to ChainCatcher news, as reported by CoinDesk, brokerage firm Bernstein stated that MicroStrategy is a pioneer in the Bitcoin capital market. The company has raised $4 billion in convertible debt to purchase Bitcoin. Analysts Gautam Chhugani and Mahika Sapra noted that MicroStrategy is the only company generating institutional demand for Bitcoin-linked convertible bonds.Bernstein pointed out that since it began purchasing cryptocurrencies in 2020, MicroStrategy has not sold any Bitcoin and is expected to continue raising funds to increase its Bitcoin reserves.

ChainCatcher news, according to CoinDesk, MicroStrategy (MSTR) submitted a $500 million convertible bond offering application on Wednesday afternoon and plans to use the proceeds to purchase more Bitcoin.A few days ago, the company completed an $800 million convertible bond financing to acquire 12,000 Bitcoins at a price of $821.7 million.It is reported that, assuming the price of Bitcoin remains around the current level of $73,000, the company will be able to use the latest raised funds to purchase an additional 6,800 Bitcoins.

ChainCatcher news, cryptocurrency exchange Bybit has invested 5.5 billion won (3.8 million USD) in T-Scientific, the third-largest shareholder of the South Korean crypto exchange Bithumb, in the form of convertible debt.It is reported that T-Scientific issued 16 billion won in convertible bonds at the end of last month, and Bybit's investment accounts for one-third of T-Scientific's total issuance, aiming to further expand into the South Korean blockchain market. (CoinDesk)