ETF Movement | GraniteShares 3X Short MSTR Daily ETP Surges Nearly 15% Intraday as Strategy Repurchases $1.5 Billion Zero-Coupon Convertible Bonds, Sparking Investor Cash Flow Concerns

Stock News
May 28

The GraniteShares 3X Short MSTR Daily ETP (07399) rose nearly 15% during the trading session. As of the latest update, it is up 11.49%, trading at HK$31.44, with a turnover of HK$3.6769 million.

On the news front, Strategy (MSTR.US) recently announced the completion of a series of capital structure and Bitcoin transactions. This includes the repurchase of $1.5 billion in face value of 0% convertible bonds due in 2029 for approximately $1.38 billion in cash, representing a discount of about 8%.

Euro Pacific Capital CEO Peter Schiff publicly questioned the move, suggesting that this debt repurchase masks Strategy's worsening liquidity issues rather than demonstrating financial strength.

It is noteworthy that Strategy reported a net loss of $12.5 billion in the first quarter, primarily due to the significant decline in Bitcoin prices earlier this year. The company's President and CEO previously stated clearly that selling Bitcoin for US dollars, or using it to repay debt, is within the company's consideration as long as it helps increase the value of Bitcoin per share. This marks Strategy's first public announcement of a strategic shift since its founder and Chairman, Michael Saylor, established the "never sell" principle.

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