00:00Monique, I'm curious about the strategy strategy, like the idea that a digital asset treasury company has these assets, but they're valued at a premium to the actual core value of the assets and how they're traded in the open market.
00:16What is the sale that these companies are making?
00:18Why should investors value them more?
00:21So a lot of these companies were saying that they're offering leverage.
00:24So part of MicroStrategy's whole strategy around how they would purchase Bitcoin was that they would issue debt and they would issue securities to fund these purchases.
00:34So because of having that debt leverage, that would mean that when Bitcoin would overperform, the thought would be that a digital asset treasury would overperform.
00:42And also, unfortunately, then the opposite.
00:43When it underperforms, it underperforms Bitcoin.
00:47So that's how they were kind of selling this to investors as a way to have that leverage for it.
00:51And it also offered opportunities.
00:52There are some people who maybe can't or don't want to directly purchase Bitcoin.
00:56So then they could purchase this through a stock like MicroStrategy, where most of the business is just buying and holding Bitcoin.
01:03Monique, what is Michael Saylor, what is strategy saying or doing now, not in response to, but to kind of explain how the premium has narrowed?
01:12Well, they haven't really changed largely what their business model is.
01:16They're still purchasing more Bitcoin.
01:18They purchased more just on Monday.
01:20They announced more purchases.
01:21But they are trying to change how they go about making those purchases.
01:25It's gotten harder to raise capital as that premium has declined.
01:29So as a result, they're looking to new investors.
01:31Their recent preferred share sales were focused more on European markets than their typical American markets that they target.
01:39And we also are seeing more of that focus on preferred shares versus issuing new stocks or issuing new convertible shares as well.
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