What is the end game for these convertibles? Will they be converted early by the bondholder? I suspect they won't be because they would rather hedge and capture the gamma. In that case why do we care about the early conversion eligibility?
Discussion
He is moving the bonds further out of the money and at a 0% intrest rate to minimize the incentives to hold. Last were 55% 0%. The incentive will be to convert as early as possible and enroll in the next round. The bigger mstr gets and the faster the bonds convert the more attractive the bonds become. Allowing saylor to make the negative intrest and further out of the money incentivising faster conversion. Also the size of each round increases along with the available bitcoin decreasing. Bing bong.
PS the higher the premium goes the more the BTC yield will be. So each share will be underlying more BTC than the dilution of the shares by issuing conversions. nostr:nprofile1qqs2xs05tluhtr6hpgsmqqxp04898gayjlyrjlexcrndv8j6el784xqpr9mhxue69uhhyetvv9ujuumwdae8gtnnda3kjctv9uq42ldx is buying gold with shells. That is why old finance thinks this will end in disaster.... because they have no fucking clue USD is the bubble and mstr is the pin.
Would not be surprised if saylor isn't on the phone with all the current bond holders in conversion territory to buy back the difference now to wipe the board clean.