Michael Saylor’s MicroStrategy Faces Risk If MSTR’s 0% Convertible Bond Lenders Recall Non-Recourse Loans Due To Covenant Breach: Here’s What It Means For Investors

Bitcoin‘s (CRYPTO: BTC) levered play MicroStrategy Inc (NASDAQ:MSTR) could face the risk of redemption on its 0% convertible debt upon the occurrence of unforeseen events breaching the covenants governing these notes despite the bonds being an unsecured, senior obligation.

What Happened: Bitcoin prices have dropped over 8.63% in the last one-month and it’s approximately 17% below the all-time high of $108,319.87, as of Jan. 13.

The cryptocurrency is not collateral for the 0% convertible notes as these notes are unsecured. Despite this, any huge price swings could impact the company with the largest Bitcoin reserves.

CEO Michael Saylor‘s MicroStrategy holds 2.116% of the total BTC supply or a total of 444,262 coins, valued at $41.249 billion.

According to its regulatory filings and earnings reports, in the …

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