Part 5/11:
One core question is: why pay a premium over the underlying Bitcoin assets? The answer lies in leverage and market demand. MicroStrategy has taken on debt with extremely favorable terms, including low or zero interest rates and attractive conversion features, enabling it to buy Bitcoin at an effective leverage of around 8%. This leverage means that Bitcoin’s appreciation benefits the company's shareholders more than just holding Bitcoin outright—if Bitcoin rises, MicroStrategy’s value grows exponentially.