Tag: Corporate Finance
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Understanding the Co-Insurance Effect: A Financial Safety Net in Mergers and Acquisitions
Conceptual Framework of Co-Insurance The theory of the co-insurance effect argues that uniting multiple companies into one reduces the risk associated with holding individual company debt. When companies merge, the diversification achieved via an…
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MicroStrategy’s Strategic Bitcoin Acquisition: Insights and Implications
Last week marked a significant step for MicroStrategy, which acquired 21,550 bitcoin, funding it through a strategic share sale. This acquisition boosts the company’s bitcoin holdings to a significant stack of 423,650 BTC, valued…