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and yet the credit market gobbled it all up! om nom shareholders can and should do whatever they want, that is the point of being so forthcoming "I want to do
by vmception 6y ago
and yet the credit market gobbled it all up! om nom
shareholders can and should do whatever they want, that is the point of being so forthcoming
"I want to do X" => market agrees or market disagrees => X does or doesn't happen
- bluedevil2k 6y agoBut they didn't get a chance to do what they want, the CEO (and I would presume the board...hopefully) made this decision to drastically reduce shareholder value on their own.
- vmception 6y agothey're in a leveraged bitcoin play they can sell now or buy puts, they've had a week
- xiphias2 6y agoActually they were offered to sell their stocks at a premium. Everything was clearly communicated to the shareholders. Sure, MSFT lost some shareholders, but so far it looks like it was a win for everyone.
- vmception 6y agoMSTR
- s17n 6y agoOf course the credit market is ok with it, they aren't taking on the risk. Shareholders on the other hand are down almost 20%
- vmception 6y agoCredit market has risk of default all for a chance of earning 0.75% for 5 years The shareholders are down because of the perceived risk of conversion which dilutes the shares, not really because of the exposure to bitcoin - which is a factor - but the market is weighing the conversion more heavily.
- xur17 6y agoIt looks like Microstrategy's gets to decide whether to convert or to pay back in stock though - it seems like they would only chose to convert if the stock price was below their conversion rate, in which case the purchaser would lose?
- vmception 6y agoNice one, nice catch! I haven't read the covenants of the bond. Just getting a trickle of information from various articles. Credit markets are more fascinating than people think, especially on leverage.
- beaner 6y agoThe date is sort of arbitrary... they're up 130% since they started buying Bitcoin in August.