MicroStrategy

In 2020, Michael Saylor faced a problem. MicroStrategy had 500 million in revenue, but the stock traded around $120 before the latest split. The business hadn't grown in a decade. Most CEOs keep cash safe, earning almost nothing. Saylor had conviction about Bitcoin. He converted the company's balance sheet into an instrument for concentrated leverage. He issued convertible notes at roughly 2% interest. If Bitcoin rises, the notes convert to stock and shareholders own the gains. If Bitcoin falls, the company pays back debt at 2%. The mathematics worked one direction only. The stock moved higher only if the asset beneath it appreciated. Low-cost borrowing bought leveraged exposure to Bitcoin.