drgo on Nostr: The MSTR convertible note thing is a little inscrutable…who gets to decide about ...
The MSTR convertible note thing is a little inscrutable…who gets to decide about conversion? What is the conversion rate? Is the note denominated in dollars?
Suppose MSTR share price fell precipitously (let’s say essentially to zero). If note is denominated in dollars and conversion rate is the market rate of MSTR, then it’s bankruptcy and all the bitcoin will get sold to repay note holders and anything left over is for shareholders.
For those thinking in Stock to flow model terms, the senate of these notes is like new Bitcoin being added to the slow (that is, it’s part of the flow).
For those thinking in power law model terms, this will happen in May/june 2029, a bit early for a post halving pump deviating from power law model.
Suppose MSTR share price fell precipitously (let’s say essentially to zero). If note is denominated in dollars and conversion rate is the market rate of MSTR, then it’s bankruptcy and all the bitcoin will get sold to repay note holders and anything left over is for shareholders.
For those thinking in Stock to flow model terms, the senate of these notes is like new Bitcoin being added to the slow (that is, it’s part of the flow).
For those thinking in power law model terms, this will happen in May/june 2029, a bit early for a post halving pump deviating from power law model.