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Each convertible bond transaction amounts to hundreds of millions or even billions of dollars. Strategy's stock price mNAV experiences significant discounts during a Bitcoin bear market. If the bonds mature during the bear market, clients won’t convert to common stock—they’ll definitely demand cash repayment. But during a bear market, Strategy doesn’t have that much cash on hand. Several large convertible bonds from Strategy (MicroStrategy) all have maturity dates set during the next Bitcoin cycle bull market. By then, the stock price will stabilize, and it’s even likely to see an mNAV premium. This is definitely by design. In the short term, Strategy won’t face cash flow pressure due to convertible bond maturities.
