Nostr Web Client

A couple of thoughts on the bitcoin credit market (MSTR):

1. The preferreds are holding up as they should in a downturn.

2. If Saylor is looking to get credit ratings for the preferreds, is this actually good signal to the credit rating agencies?

3. Saylor has mentioned closing out the convertible bonds. Is there a benefit to Saylor, Strategy, Common stock holders, and/or preferreds if they close out the convertible bonds closer to 1x mNAV?

About to chat with AI about this, but please repost this if you see it. Would love to get some thoughts from people on this.

nostr:nprofile1qqsp4lsvwn3aw7zwh2f6tcl6249xa6cpj2x3yuu6azaysvncdqywxmgpp4mhxue69uhkummn9ekx7mqpzfmhxue69uhk7enxvd5xz6tw9ec82csddzc47 nostr:nprofile1qqsvfr3f7p95stxqrjslnmuvsmhcxxxqt8swjdfjx5tz7zq0yms5cygpramhxue69uhhyetvv9ujumn0v3jhyatwdejhyuewdejhgam0wf4sz9rhwden5te0wfjkccte9ejxzmt4wvhxjmcmg26u9 nostr:nprofile1qqsw4v882mfjhq9u63j08kzyhqzqxqc8tgf740p4nxnk9jdv02u37ncpz4mhxue69uhkummnw3ezumtpd35kutn0dekqz9thwden5te0wfjkccte9e4kzmts9eekjar9y08qv9 nostr:npub1guh5grefa7vkay4ps6udxg8lrqxg2kgr3qh9n4gduxut64nfxq0q9y6hjy

Reply to this note

Please Login to reply.

Discussion

TDR 3mo ago

I know I’m basically talking to myself here but just in case anyone is following along.

Below is Groks answer to thought #3 in the quoted post.

“Yeah. If MNAV's near one, the stock's basically BTC at cost-no hype tax. So Saylor closes convertibles cheaper: he calls 'em when holders convert willingly, dodging dilution pain. High MNAV means everyone's fighting for shares; conversions flood the market, tank price. Low-ish MNAV lets him refinance smooth, pull in those preferreds without chaos. Institutions love that stability-credit ratings come easier too.”

And this is its answer to why closing converts is good for the preferreds:

“Closing the converts means no future dilution for anyone-so the preferreds stay fat, yields look safer, price pops. Right now, bondholders could convert and swamp the float, crushing MNAV, forcing Saylor to pay out dividends or buy back preferreds at a premium. Clean slate lets him pitch those eight percent perpetuals to insurers without saying oh by the way, more shares might show up tomorrow. It’s like killing a leak before it floods the room-preferred holders sleep better, ratings agencies smile.”

nostr:nprofile1qqst0xtvrqlqxm0j0qpfgkuqh0wgkzl4judkvgdgd0e4d8pnyytlqlgpzpmhxue69uhhytngdaehgu3wvd3szynhwden5te0wp6hyurvv4cxzeewv4esx33yts

nostr:nevent1qqsx6jja8jjpvysr6r983w4dv2wyphsf734kdneqmkpcgs6kd5s4q0qprpmhxue69uhhyetvv9ujuumwdae8gtnnda3kjctvsep2n3