CoinShares said financing conditions need to remain favorable and there needs to be investor demand for the company's convertible debt.at-the-money offering of its own stock last week to raise capital to buy more bitcoin. This is part of a larger plan to buy anotherMicroStrategy's ability to successfully execute on its bitcoin acquisition plan is dependent upon a number of factors, according to CoinShares.
The cost of servicing its debt is also rising. CoinShares noted that in 2021, MicroStrategy was able to raise debt at zero-coupon convertibles, but these coupon rates have since been rising with new issues. Furthermore, any disposals could also trigger tax events, which could be sizable, the report said, adding that in the future, the firm could be taxed on unrealized gains related to its crypto stack.