This interview podcast features a discussion between Joe Weisenthal, Tracy Alloway, and Matt Levine about MicroStrategy's financial strategy, specifically its use of convertible bonds and Bitcoin. The conversation begins with Tracy's initial observation of MicroStrategy's seemingly perpetual money-making machine, leading to a detailed explanation by Matt Levine of the company's strategy, including the role of convertible arbitrage and the impact of market volatility. Matt explains how MicroStrategy leverages convertible bonds and the high volatility of its stock to attract investors seeking Bitcoin exposure or volatility-based trading opportunities. A key takeaway is that MicroStrategy's stock trades at a premium to the value of its Bitcoin holdings, a phenomenon the guests find puzzling and potentially risky. The discussion concludes with broader reflections on the use of convertible bonds by various companies and the potential for replicating MicroStrategy's model in other contexts.
