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Leverage

All articles tagged with #leverage

MicroStrategy’s Bitcoin Bet Faces Breaking Point as Leverage Grows
business12 days ago

MicroStrategy’s Bitcoin Bet Faces Breaking Point as Leverage Grows

MicroStrategy’s bitcoin-treasury strategy has hit a breaking point: enterprise mNAV fell to 0.99, meaning its total debt and perpetual stock now exceed its bitcoin holdings and threaten future financing. In a bear market, rising leverage and weaker bitcoin prices have exposed the model’s risks, with analysts predicting further downside to around $50k–$20k and possible bitcoin liquidations if needed. The firm’s famed “never sell” stance has softened as Saylor acknowledges potential sales to shore up the balance sheet.

via 24/7 Wall St.|
#bitcoin#business#debt
Paramount Credit Downgrade Expected After Warner Merger, S&P Says
business1 month ago

Paramount Credit Downgrade Expected After Warner Merger, S&P Says

S&P Global Ratings says Paramount’s junk-status debt will be downgraded to BB when its Warner Bros. Discovery merger closes, as the combined group is expected to carry very high leverage (about 7.6x adjusted debt/EBITDA in 2026, not projected below 5x until 2029) and faces integration and regulatory risks; Paramount would assume roughly $30B of WBD net debt on top of its own, with potential $6B in cost synergies that may take time to realize.

via Variety|
#business#junk-status#leverage
GameStop’s $56B eBay bid hinges on keeping its credit rating intact
business2 months ago

GameStop’s $56B eBay bid hinges on keeping its credit rating intact

GameStop disclosed a $56 billion offer to acquire eBay with a $20 billion financing commitment from TD Securities, but a key condition requires the combined company to maintain an investment-grade credit profile. Moody’s warned the deal could be credit negative due to high leverage (near 9x debt/EBITDA), risking the financing terms and casting doubt on the deal’s feasibility as GameStop’s market cap trails the deal size. eBay’s board will review the bid, and GameStop has hinted at issuing more stock if needed.

via CNBC|
#business#ebay#financing
Bitcoin Dips to $64K as Macro Forces Overpower Market
business4 months ago

Bitcoin Dips to $64K as Macro Forces Overpower Market

Bitcoin slid to about $63,800—roughly 50% below its October peak—as a confluence of macro shocks (tariff hikes, higher-for-longer rate expectations, and leverage) weighed on risk assets. Analysts say the move reflects macro pressures rather than a fundamental breakdown of Bitcoin’s four-year cycle; a fall toward $55k isn’t ruled out, but many expect stabilization in the mid-$60k range and a gradual recovery as demand returns and ETF outflows wane. Near-term liquidity stress also produced large crypto liquidations, with over $500M in outsized positions wiped out across markets.

via Decrypt|
#bitcoin#business#etf-outflows
Analyzing Diplomatic Successes and Failures in Gaza and Ukraine
world9 months ago

Analyzing Diplomatic Successes and Failures in Gaza and Ukraine

The article compares Trump's diplomatic successes in Gaza, where he had significant leverage and political will, with his failures in Ukraine, where limited leverage and political hesitations hinder peace efforts. It highlights the objective and subjective reasons behind these outcomes, emphasizing the differences in U.S. influence over Israel and Russia, and the importance of political will in achieving peace.

via The Kyiv Independent|
#diplomacy#gaza#leverage
Retail Traders Turn to High-Risk Currency Trading as the New Meme Stock
finance11 months ago

Retail Traders Turn to High-Risk Currency Trading as the New Meme Stock

The article discusses the rising trend of retail day traders entering the foreign exchange (forex) markets, driven by high leverage and social media influence, despite the significant risks and the market's zero-sum nature. It highlights individual traders' experiences, the growth in trading volume, and the dangers posed by leverage and inexperienced trading, emphasizing that most retail traders tend to lose money.

via Bloomberg|
#currency-markets#finance#forex-trading
Bitcoin Treasury Companies Face Growing Risks Amid Market Saturation
finance1 year ago

Bitcoin Treasury Companies Face Growing Risks Amid Market Saturation

The article discusses the recent rise of corporate Bitcoin treasury strategies, highlighting how companies are adopting Bitcoin as a treasury asset for reasons like mandated capital allocation and leveraging advantages. It explores whether this trend benefits or harms Bitcoin's mission, emphasizing that large institutional involvement is inevitable and can enhance Bitcoin's network effect, despite concerns about centralization and control. The piece also explains Bitcoin's role as a store of value and its potential to become a medium of exchange once its size and stability increase, while acknowledging the risks and opportunities in the evolving corporate and institutional landscape.

via Lyn Alden - Investment Strategy|
#bitcoin#corporate-treasury#finance