Convertible Bonds
What are convertible bonds
Picture it as an arranged agreement:
You lend AicroStrategy a certain amount of stablecoins (say, USDC) for a set period.
You lock in a future strike price at which you could acquire $AiSTR.
If $AiSTR’s market value climbs above that price when the bond matures, your stablecoins convert into $AiSTR at the lower, locked-in rate.
If it doesn’t climb, you simply get back your stablecoins.
Example:
Carla’s Deposit Carla holds 2,000 USDC and hears about AicroStrategy’s convertible bonds. Instead of buying $AiSTR outright (where she’d face every price swing), she opts to deposit her USDC in a 6-month bond.
Strike Price Taking an example where the bond strike is set at 15% above $AiSTR’s current price. So if $AiSTR trades at $1.00 now, her strike is $1.15.
If $AiSTR goes above $1.15 by maturity, Carla’s stablecoins morph into $AiSTR at that $1.15 rate.
If $AiSTR doesn’t pass $1.15, she reclaims her 2,000 USDC.
Treasury Support AicroStrategy promptly deploys Carla’s USDC to purchase more Bitcoin, adding to the treasury that underpins $AiSTR’s value. The bigger the BTC treasury, the stronger the potential for $AiSTR (that’s the idea, anyway).
Maturity Day
If $AiSTR soared to $1.50, Carla’s bond automatically converts at $1.15. She effectively “buys” $AiSTR at below-market prices, scoring a potential gain.
If $AiSTR lags and sits at $1.05, she simply redeems her 2,000 USDC.
There’s no nerve-wracking day-to-day guesswork—just a yes/no final outcome at maturity.
Key Benefits
Upside with a Safety Net You’re not all-in on $AiSTR’s volatility. If the token booms, you convert at a favorable rate. If it doesn’t, you keep your stablecoins.
Continuous BTC Accumulation Every USDC deposit helps AicroStrategy buy more BTC—this synergy supports $AiSTR’s potential.
Simple Redemption Once the bond matures, redemption is straightforward: either you convert to $AiSTR or reclaim your stablecoins.
Tldr;
Gain if $AiSTR rises; get your USDC back if it doesn't.
Every USDC deposited helps buy more BTC, reinforcing $AiSTR's strength.
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