VIKTOR
VIKTOR
STRK-1.59%
What I find interesting though is that the ATM amounts chosen for each preferred are not the same, and even if they are high arbitrary ceilings that won't be reached in the near term, they are signaling something : - $STRF ("investment-grade bond") : $2.1bn - $STRK ("convertible bond") : $21bn - $STRD ("junk bond") : $4.2bn You can see that the ATM for STRK is much larger, which makes sense because STRK is convertible into MSTR, so the burden of the dividend payments is less important on STRK, and STRK also has a much higher upside than STRF/STRD. A lot of people are scared about the dividend payments that Strategy will have to honor and that will grow over time, but these numbers seem quite conservative to me.
VIKTOR
VIKTOR
What does this mean ? Not much, this was completely expected. Basically, until now, he had the right to issue new shares of MSTR/STRK/STRF at any time into the market, and now he also has the right to do that on STRD.
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