BenWerkman on Nostr: I ran some numbers on MSTR, it turns out that doing the $2B Preferred Offering and 2 ...

I ran some numbers on MSTR, it turns out that doing the $2B Preferred Offering and 2 additional $3B Convertible debt offerings ($6B Total) is not going to be enough to get to the target 25% leverage ratio. It only gets us to 22.26% (assuming Bitcoin stays at these price levels).

So in fact they will likely have to go bigger and bump those converts up to $4B each (or issue 4 $2B Converts) which gets us to 24.9% leverage.

Side note for those still talking about the over leveraged position of MSTR (even today), with the 2027 converting the Debt-to-Equity ratio is currently 0.15. Go take a look at some other companies and see where that stacks up in the "risky leverage" category. Even issuing the proposed $8B in converts it only gets to 0.32.

Q1 is going to be very busy with lots of Bitcoin buying.