That’s not exactly accurate. They have $1.4B in a cash reserve 21 months of dividends to support the preferred equities. They can tap the ATM on the at preset $8B of prefs even if the prefs don’t ...
Kinda ignores the reality of how their growth engine actually works tho. To refill the burn they need to issue stock But if the stock is trading at a discount because of a stagnant market (which is what we're talking about here) that issuance becomes highly dilutive to shareholders. As for the ATM there, yup great when market is bullish, but you can't tap an ATM if there are no buyers on the other side of the trade who want to fund a stagnant asset. Phong Le even said in such as case better to sell Bitcoin rather than issue stock at a discount.
Basically the derivatives math only works if you assume high volatility continues. Which of course if we get back to that then they're fine. But if it stays pretty flat around where it is now the flywheel flys off.
Basically the derivatives math only works if you assume high volatility continues. Which of course if we get back to that then they're fine. But if it stays pretty flat around where it is now the flywheel flys off.
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