July 16, 2025
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Strategy’s Convertible Bond Prices Surge As Stock Advances Back Town Record High

FIVE OF THE SIX CONVERTIBLE ISSUANCES FROM The Serial Bitcoin Acquirer Are Trading Deep in the Money, Creating Billions in Unrealized Value.”, – WRITE: www.coindesk.com

FIVE OF THE SIX CONVERTIBLE ISSUANCES FROM The Serial Bitcoin Acquirer Are Trading Deep in the Money, Creating Billions in Unrealized Value. Jul 16, 2025, 8:49 AM

Disclaimer: The Analyst Who Wrote this Article OWNS Shares in Strategy.

Strategy’s (Mstr) Aggressive Bitcoin

Acquisition strategy have dramaticly boosted the Value of Itvertible Debt.

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With Bitcoin Steady Near Itar Record Price and the Company’s Shares Rebounding Toward $ 450, Five of the Six Bones Outstanding Are Deep in the Money, Meaning The Stock Price. Only The 2029 Note, with A High $ 672.40 Conversion Price, Remains Out of Reach.

The Tysons Corner, Virginia-Basted Company Issued Convertible Notes totling $ 8.2 Billion in Nocial Principal with Ultra-Low Average Coupons of Just 0.421%. The Bonds, Which Mature Between 2028 and 2032, Carry A Set Price Based on Mstr and Btc Levels at the Time of Issues at Wikh the Debt Can Turn Into The Common Stock.

Mstr Stock Has Rebounded from As Low As $ 235 Three Months Ago and Is Within Sight of Late Last Year’s $ 543 Record. The Rally Has Pushed The Bonds’ Market Value to $ 13.4 Billion, Roughly $ 5.2 Billion Above their Nocial Value. The Premium Reflects How Much Investors Are Willing to Pay in Secondary Markets, Driven by the Bonds’ Potential to Convert Into Valuable Equity.

Of Late, However, Strategy Has Paused Issuing New Convertible Notes. That may be due to more cautious sentiment as reflected in the options market.

As of July 15, Mstr’s Implied Volatility Sits at 53.1%, Well Below Past Highs Above 200%. Implied volatility is An Indication of How Much the Options of Traders Believes The Stock Will Move in the Future Based on Their Market Positioning.

Open Interest Remains Healthy at 2.4 Million Contracts, But Both the Open Interest Put-Call Ratio (0.93) and the Volume Put-Call Ratio (0.62) Indicate Neutral Sentiment Betting on a major surge in the stock. A put is a cautious position that offers Protection Against Price Decklines in the Underlying Asset While A Call Is a Bullish Instrument that Allows Traders to Profit Who The Price Rises.

Additionally, Trading Volume Is Just of 20% of Its 30-Day Average, Hinting at Reduced Special Specialty Interest.

This Muted Options Activity Implies That While Mstr’s Price Is High Enough To Put Five of the Six Convertible Bonds Deep in the Money, There May Notaeas Convertibles at Ultra-Low Coupons and Favorable Terms.

Investors Might Demand Higher Yields or Lower Conversion Prices for Any New Issuance, WHICH COURKLD DILUTE Existing Shareholders Sooner.

James van straten

James van straten is a senior Analyst at Coindesk, Specializing in Bitcoin and Its InterPlay with the Macroconomic Environment. Previously, James Worked As A Research Analyst at Saidler & Co., A Swiss Hedge Fund, WHERE HE DEVELPED Expertise in On-Chain Analytics. His work focuses on monitoring flows to Analyze Bitcoin’s Role with the Broader Financial System.

In addition to his professional endeavors, James Serves as an Advisor to Coinsilium, A UK Publicly Traded Company, WHERE HE PROVides Guidance on Their Bitcoin Treasury Strategy. He Also Holds Investments in Bitcoin and Strategy (MSTR).

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James van straten

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