MICHAEL SAYLOR'S STRATEGY EXPLAINED

Summary from the TLDR Crypto newsletter

MicroStrategy and similar firms are issuing convertible debt or equity-like instruments to borrow funds and deploy the proceeds into Bitcoin, offering investors a familiar, regulated way to gain exposure without self-custody. Investors prefer these instruments over direct Bitcoin purchases due to ease of access, regulatory allowances, and reduced technical risk. If Bitcoin's price declines, companies face haircuts, renegotiations, or bankruptcy – leaving investors holding Bitcoin – and there's a risk that issuers may misrepresent their actual holdings.