What is Nostr?
PhilRoss / Phil Ross
npub1t49…2j9u
2024-11-27 15:29:44
in reply to nevent1q…j9cs

PhilRoss on Nostr: Yeah, weird to me that Microstrategy would hold the option to convert them to equity. ...

Yeah, weird to me that Microstrategy would hold the option to convert them to equity. I think the missing piece here is what would drive forced paybacks or the “special interest” referenced. Because 0% notes at par would only make sense if the equity is worth less than the 55% premium, but MSTR holding the conversion option is very company friendly. I don’t see the return for investors in this case, so leads me to conclusion that the “special interest” triggering events and pricing must be sufficient return. Otherwise it’s “tails I win, heads you lose” for MSTR
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