Some Convertible Bond valuation estimates from us for $MSTR CB using the @business OVCV OAS function. Using a implied volatility of 100.4 (about 1 year implied), base credit spread of 50, we have estimated that the option adjust credit spread is about 1290 bps running.
Inclusive of the credit spread, this is about 1340 basis points, which is a large premium for the credit spread. At the end of September, the MSTR had about 770 million USD in assets (maybe 300mm in #Bitcoin ?), and now will have 1.4 billion in assets (probably a bln in BTC)
$MSTR's debt total liabilities would grow to about 1.1 billion, which is simply covered about 1x with Bitcoin at today's prices. A 90 cents on the dollar recovery at this point just on #bitcoin alone.
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