Sanrith Descartes
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Investing General Discussion
- Thread starter Furious
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Tmac
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A Target / OpenAI partnership is actually retarded lol. What does that even mean?
Sanrith Descartes
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Sanrith Descartes
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swayze22
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Sanrith Descartes
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Sanrith Descartes
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Blazin
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I'm loving the challenge of trying to see how this plays out with MSTR, the preferred share dividends are not guaranteed and are written in a way that skipping them is not a default event. The strike on the convert is now grossly out of the money. The holders of these things may be royally fucked. They have a priority claim on the BTC in a liquidation but that isn't likely to happen, the scenario becomes just a dead money trade at substantially under par. It is trading like participants are sniffing out that the payments are going to be nixed. Just the beginning of it or they would be a good bit lower.
He gave himself a lot of power structuring things the way he did, but it feels like that could also be the undoing as investors realize what a shitty deal holding these preferred is. And how many morons were buying this stuff saying it was just a better savings account. If the price stays low he can't hit the ATM without accelerated dilution, if he sells more preferred it's now going to be well below par and that just delays the problem.
He is confident because the divy size compared to the BTC pile is so small and it is, but the BTC pile isn't how he pays the dividend it's as simple as that. If you aren't going to sell BTC, the size of the stack is irrelevant to meeting obligations, only dilution meets obligations.
He gave himself a lot of power structuring things the way he did, but it feels like that could also be the undoing as investors realize what a shitty deal holding these preferred is. And how many morons were buying this stuff saying it was just a better savings account. If the price stays low he can't hit the ATM without accelerated dilution, if he sells more preferred it's now going to be well below par and that just delays the problem.
He is confident because the divy size compared to the BTC pile is so small and it is, but the BTC pile isn't how he pays the dividend it's as simple as that. If you aren't going to sell BTC, the size of the stack is irrelevant to meeting obligations, only dilution meets obligations.
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Big Phoenix
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Sanrith Descartes
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I would only be concerned if he was selling shares.
More of a joke as those shares are part of a pre-programmed selling pattern filed with the SEC. But it is close to about $100m in value he has sold off.
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Sanrith Descartes
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I disagree. A beat and move up by NVDA will no doubt help because of index influence, the the market as a whole isn't looking all that healthy. It could be a short term rise but the market needs something besides NVDA to keep right the ship.
As miss or a lowering of guidance, on the other hand, would be a mass casualty event.
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Sanrith Descartes
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investors reading the fine print and finding out those dividends aren't "guaranteed"...
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