A recently launched exchange-traded fund, named the REX Bitcoin Corporate Treasury Convertible Bond ETF (NASDAQ:BMAX), began trading on Friday, focusing on convertible bonds issued by firms that hold Bitcoin (CRYPTO: BTC) on their balance sheets, such as Strategy (NASDAQ:MSTR), previously known as MicroStrategy.
Managed by REX Financial, this fund targets companies that have adopted the practice of issuing equity-linked notes to finance their cryptocurrency investments, a strategy led by Strategy under its executive chairman, Michael Saylor, Bloomberg reported.
These convertible bonds start as low-interest debt but can transform into company stock if share prices reach a certain threshold, offering investors both interest income and potential equity gains.
Strategy has issued nearly $9 billion in convertible bonds in recent years, amassing a Bitcoin portfolio valued at around $40 billion, which forms a …
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