Well… if you were to steelman their rational - it’s that the investor gets the upside of bitcoin / mstr growth, but the downside protection that if it doesn’t grow (or goes down) they get their money back (plus a little interest)
The details of that are in the press release. The convertible note either pays back the loan w/ .0625% interest or converts to equity at 0.667. Someone can confirm my napkin math but this roughly means if if the price is over $1500/share (largely due to being a proxy for bitcoin growth), you might be better off taking the equity, and less than that and you could just take the loan back.
I’m oversimplifying, but this is the general idea why someone would consider it.
(PS disclaimer: I have no relationship w them, own no msft stock, and this is not investment advice)
jeremy / Jeremy
npub1mc…2c0py
2024-03-14 02:27:02
in reply to nevent1q…zwxc
Author Public Key
npub1mcea9vvq5arw9fg6e33tj3w3cfhy7ffkz7n8yy3qzy2q63lyu56s62c0pyPublished at
2024-03-14 02:27:02Event JSON
{
"id": "f9f6ff950de8bf92cc89e69bd16e5e674602b025cb523519a4d6ad3ebb758197",
"pubkey": "de33d2b180a746e2a51acc62b945d1c26e4f253617a672122011140d47e4e535",
"created_at": 1710383222,
"kind": 1,
"tags": [
[
"e",
"663694bba9329d072fbf90093d0ee9b7bab2f989a165fd83414730732cfa8035"
],
[
"e",
"05c5a4d67e22468a50ec271a141d386ac6d21b456bc730a3a71d42b075411db5"
],
[
"p",
"9236f9ac521be2ee0a54f1cfffdf2df7f4982df4e6eb992867d733debcf95b35"
]
],
"content": "Well… if you were to steelman their rational - it’s that the investor gets the upside of bitcoin / mstr growth, but the downside protection that if it doesn’t grow (or goes down) they get their money back (plus a little interest)\n\nThe details of that are in the press release. The convertible note either pays back the loan w/ .0625% interest or converts to equity at 0.667. Someone can confirm my napkin math but this roughly means if if the price is over $1500/share (largely due to being a proxy for bitcoin growth), you might be better off taking the equity, and less than that and you could just take the loan back. \n\nI’m oversimplifying, but this is the general idea why someone would consider it. \n\n(PS disclaimer: I have no relationship w them, own no msft stock, and this is not investment advice)",
"sig": "a53e06e55eaa859719600b1b6453516c482c7f33c88ccab5947c74c8f030711aa855fe3b69eeeafdd1844c2ee1867551b22964c3274f6dbb9dbba92572a7a90c"
}