BitMEX Research: Strategy's debt is not ordinary debt and will not lead to a forced sell-off of BTC that could trigger a downward price spiral

On November 15, BitMEX Research published a study of Strategy's new debt instrument, Stretch, with a issuance size of about $3 billion. Stretch is designed to maintain price stability by adjusting the dividend rate monthly according to bond market prices, but Strategy can abandon the price stability target and reduce the dividend by up to 25 basis points per month. At the current 10.5% dividend rate, it may be reduced to zero in three and a half years. As the dividend rate decreases, the cost of paying dividends will also become lower and lower. This is very good for Strategy, so the current dividend payment is sustainable and affordable. This is another attempt by Saylor to invade the financial system, and the purpose is still to accumulate more bitcoins.
BitMEX Research says Strategy's debt may not turn out to be the forced sell-off of bitcoin that some sceptics expect, triggering a price spiral that would eventually lead to its bankruptcy. It is important to understand that Strategy's debt instruments are highly innovative, not ordinary debt instruments, but specifically designed for their own needs. Michael Saylor is a wizard of our time, often using some exotic mechanism, whether debt or equity, to raise billions of dollars for companies. No matter what happens to the price of bitcoin or what happens to the flow of money, Strategy will be safe and sound.