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
Published at
2024-11-27 15:29:44Event JSON
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