AicroStrategy vs. The Traditional: An Alternative to MicroStrategy's Latest Move

Taking the latest example of MicroStrategy's Capital Raise via Preferred Stock

  • MicroStrategy is looking to raise up to $2 billion through a perpetual preferred stock offering. These stocks will have convertibility features, meaning they can convert to MicroStrategy’s common stock if certain conditions are met. The purpose is to strengthen its balance sheet and acquire more Bitcoin.

AicroStrategy's Advantage: On-chain Innovation and DeFi Leverage

  • Decentralized and Transparent: AicroStrategy offers a decentralized, on-chain solution, using smart contracts to issue bonds and manage the conversion process.

  • Automation: The bond conversion process is automated and happens seamlessly, without the need for intermediaries or redundant manual steps.

  • AI-Driven Leverage and DeFi: Instead of statically holding Bitcoin, AicroStrategy actively grows its Bitcoin exposure using advanced DeFi strategies.

    • E.g. By supplying Bitcoin to protocols like Morpho and borrowing stablecoins, AicroStrategy uses a compounding strategy to increase Bitcoin holdings, amplifying returns over time.

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