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@ 14aac5ed:7f94152c
2025-01-25 22:31:20
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.
https://m.primal.net/OAKJ.png