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.
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.
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