Matt Levine’s Money Stuff: Strategy Sells Perpetual Strife

Perpetual … strife?

Strategy, the company formerly known as MicroStrategy Inc., is in the business of selling securities to raise money to buy Bitcoin. The securities that it has sold to buy Bitcoin include:

1. Its common stock, which trades at a premium to the value of its underlying Bitcoin, making this a very nice trade for Strategy and a somewhat perplexing one for the people buying the stock.
2. Convertible bonds, bonds that can be converted into common stock, which benefit from the extreme volatility of Strategy’s stock: Convertible arbitrageurs make money as Strategy’s stock bounces up and down, which ...