Orbisa insights dives into MicroStrategy Incorporated (MSTR), which has seen a steady increase in demand in the securities lending market in recent months, with the total quantity of shares borrowed up 7% and the borrow demand percentage up 6% month over month. MicroStrategy recently announced a plan to issue convertible bonds to finance the purchase of Bitcoin, the third such issuance by the firm this year. The increased lending activity in the common stock may indicate that MicroStrategy is a target for convertible arbitrage. It is worth noting that MicroStrategy’s nearest-to-maturity convertible (US594972AC51) has a borrow demand of just 2.6% compared to 71.8% for the stock.
Past performance is not indicative of future results
Originally Published June 20, 2024 – Orbisa on MSTR
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