Yeah, if I was a shareholder I'd be upset as well at their plan to borrow money and purchase a highly volatile asset at its historical peak price. Plus, if I was a shareholder who did think that Bitcoin was an asset worth investing in, I'd rather do it with my own money and reap all the rewards than let a tech company do it and get the watered down returns (after they pay all their bonuses and everything).
> One thing's certain: the successful raise and the increased size point to tremendous interest in Bitcoin from investors of all sizes.
No it doesnt. It points to the fact that the market will buy USD debt paying out interest in USD. A US 5 year treasury note pays out a little under 0.4%, so this note paying 0.75% is a way to get a little more yield by taking on some credit risk.
Credit market has risk of default all for a chance of earning 0.75% for 5 years
The shareholders are down because of the perceived risk of conversion which dilutes the shares, not really because of the exposure to bitcoin - which is a factor - but the market is weighing the conversion more heavily.
It looks like Microstrategy's gets to decide whether to convert or to pay back in stock though - it seems like they would only chose to convert if the stock price was below their conversion rate, in which case the purchaser would lose?
But they didn't get a chance to do what they want, the CEO (and I would presume the board...hopefully) made this decision to drastically reduce shareholder value on their own.
Shareholders were informed of the plan well ahead of the bitcoin purchases. They were offered the chance to sell their shares. Existing shareholders have proven they are onboard with this change of strategy.
