LibreCharts

2021-06-12 08:53:20 Terms of the First Convertible Note Offering by MicroStrategy

The official press release from MS can be found here: https://www.microstrategy.com/en/investor-relations/press/microstrategy-completes-1-05b-offering-of-convertible-senior-notes_02-19-2021

We're going to extract the relevant details below for the sake of brevity.

1. Date = Feb. 19th, 2021

2. Maturity Date = February 15th, 2027

3. Sold via Rule144A (SEC exemption for securities offering)

4. Notes are "unsecured, senior obligations" (senior convertible notes)

5. MicroStrategy has a redemption option for the notes (starting Feb. 20th, 2024; for cash) if, and only if the price has appreciated by >=130% of conversion price (according to last reported price)

6. Shares are convertible into cash, shares of MicroStrategy's class A common stock, or a combination of cash and shares of MicroStrategy's class A common stock...

7. (important) - "The conversion rate for the notes is initially 0.6981 shares of MicroStrategy’s class A common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $1,432.46 per share."

8. (important again) - "This represents a premium of approximately 50% over the last reported sale price of $955.00 per share of MicroStrategy’s class A common stock on The Nasdaq Global Select Market on February 16, 2021."

We'll unpack this in the next section. Open / Comment

2021-06-12 08:46:30 Why it is Important to Understand What Convertible Notes are For MicroStrategy

This will significantly impact your understanding of the "debt financing" that MicroStrategy did recently (i.e., the $1B + $600M in convertible notes that they sold).

We're going to go in and cover the first billion that MicroStrategy issued at ($1B back in Feb 2021); so, assuming that you all have read up (or will do so) - let's go. Open / Comment

2021-06-12 08:44:42 Starting With the $1B in Debt Financing Done Earlier in 2021

Back in February, MicroStrategy announced that they would be debt financing a huge purchase of Bitcoin (adjusted some #'s until they landed at $1B).

We're going to break down the terms of this offering, because details have been opaque in this space.

Understanding Convertible Notes

Your best source for understanding how these work would be Investopedia - you can find out more about them from the following links:

1. Senior Convertible Notes (full blown explainer; these are the type of convertible notes that MicroStrategy issued back in Feb. 2021) = https://www.investopedia.com/terms/s/senior-convertible-note.asp

2. Introduction to Convertible Bonds (as an overall investment class) = https://www.investopedia.com/investing/introduction-convertible-bonds/ (this is probably the best article to start with if you're new to the idea)

3. Convertible Notes - Pros and Cons for Companies and Investors (good for understanding how these are used in 'practice') = https://www.investopedia.com/articles/bonds/08/convertible-financing.asp

4. Conversion Premium (this is a relevant term that we're going to discuss in here in a second) = https://www.investopedia.com/terms/c/conversionpremium.asp

5. When Convertible Bonds Become Stock = https://www.investopedia.com/ask/answers/06/stockfromconvertiblebondorigin.asp

If you aren't familiar with Investopedia, they're a really good source for people that just want to know the basic 'English' behind what something is.

There may be no other site on the internet that's better at breaking down complex concepts in an easily digestible manner.

These guides are written with the assumption that the audience may not know a damn thing about finance, stocks, etc., so don't feel intimidated by any of these terms if you're not familiar with them. Open / Comment

2021-06-12 08:37:05 MicroStrategy's price increase over the past 5 days is highly suspicious...

Where did the +20% gain come from? This company is almost dead in the water at this point in time.

We're going to break down exactly why. Open / Comment

2021-05-26 19:41:34 What a shitshow - genuinely ; can't believe there's anybody in their right mind that's really using Binance as though its a legitimate exchange Open / Comment

2021-05-26 19:36:36 Open / Comment

2021-05-26 19:35:16 More individuals that are having issues with these leveraged tokens.

Its very easy to sit here and run through a list of issues that individuals are having with the platform (its extensive in a really bad way) Open / Comment

2021-05-26 19:28:11 In case you weren't able to see the screenshot in the previous post (or didn't want to download the .png) Open / Comment

2021-05-26 19:27:44 Binance committing widespread mass scale fraud on its users and it appears to be getting swept under the rug entirely.

Not one single news outlet feels compelled to cover Binance's nefarious behaviors. Absolutely absurd.

These shenanigans they're playing in the space are a major reason for why we see the price declining as much as it is currently. Open / Comment

2021-05-26 01:49:29 No Clue What's Going On

There are a few hints that are lingering out there, but there's nothing that this market dump can be pinned on in specific.

The China news is something that was not only inevitable but expected. Also, China did not unilaterally ban the use of crypto (nor have they ever). But like every other nation on planet earth, it appears that they're getting ready to put the smackdown on this crypto shit.

Crypto Regulations are Going to Rock Everyone

This is what's really spooking the markets right now.

Folks know that when the regulation does come, its going to be vicious.

Many point to the fact that this drop-off in the prices mirrors what we saw in April 2013 (month & year that Satoshi Nakamoto died and crypto was taken over by greedy warlords forever - following the implosion of Mt. Gox).

We're going to attempt to fight back against these warlords in this channel by dropping knowledge on the markets (along with all other facets of the crypto sphere as we're able to). Open / Comment