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Credit 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 dil
by vmception 6y ago
Credit 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.