Strategy stated that even if Bitcoin drops to its average cost basis of $74,000, its BTC holdings would still cover its convertible debt by 5.9 times—a ratio the company refers to as its “BTC Rating.” Strategy also noted that at a BTC price of $25,000, the coverage would remain at 2.0 times. Recently, Strategy was once again excluded from the S&P 500 Index. https://t.co/OnGhhemIZU ...

⚡️ TODAY: Sequans shares dropped 16% after selling 970 Bitcoin to cut its convertible debt in half, describing it as “strategic asset reallocation.” https://t.co/F5XqP2Ta8h ...

Bitcoin Holdings - Sequans Communications 出售 970 比特币，用于偿还 9450 万美元可转换债券 [1] - Sequans Communications 的比特币储备减少至 2264 BTC [1] - Sequans Communications 成为首家显著减少比特币持有量的上市比特币储备公司 [1]

Core Viewpoint - AST SpaceMobile's shares declined by 13.5% following the announcement of a $1 billion private offering of convertible senior notes, which dilutes existing shareholders [1][3]. Group 1: Offering Details - The company announced a private offering of $1 billion in convertible senior notes due in 2036, increasing from an initial target of $850 million [3]. - The notes have an initial conversion price of $96.30, representing a premium of 22.5% to the previous closing price, which has now increased to nearly 40% [3]. - The interest rate on the notes is set at 2%, with an option for purchasers to buy an additional $150 million in notes [3]. Group 2: Financial Implications - AST expects to receive approximately $981.9 million in proceeds from the sale, which will be used for general corporate purposes, including satellite deployment [4]. - The company is currently valued at a market cap of $26 billion and anticipates generating meaningful revenue between $50 million to $75 million in the second half of the year [6]. Group 3: Market Reaction and Future Outlook - Investors are generally hesitant about capital raises for companies without profits, which is reflected in the stock's performance [5]. - Although the convertible debt will not immediately dilute investors, further capital raises are likely needed in the future as the company is years away from profitability [6][7].

Core Viewpoint - Energy Fuels has successfully raised $700 million in convertible debt, which has led to a recovery in its stock price after initial fears of share dilution [3][6][9]. Group 1: Financial Details - Energy Fuels issued $700 million worth of convertible notes to private investors, which can dilute existing shareholders if converted into shares [3][4]. - The debt carries a low interest rate of 0.75% and is due in November 2031, indicating favorable terms for the company [4]. - The company has over $645 million in cash available for operations, allowing it to sustain its business for nearly six years despite annual losses of approximately $115 million [6][7]. Group 2: Market Reaction - Initially, the stock price fell due to concerns over potential dilution, but it rebounded by 2.3% on Monday and surged an additional 7.8% by Tuesday morning [1][6]. - Investors have shifted their focus from dilution fears to the positive implications of having substantial cash reserves for growth in uranium and rare earth metal mining [6][9]. Group 3: Future Outlook - The cash raised positions Energy Fuels to capitalize on expected growth in the U.S. nuclear industry, which may provide sufficient time for the company to stabilize and grow [7].

A niche hedge fund strategy involving convertible debt is having a moment, with market forces aligning to create ideal conditions for trading the hybrid securities https://t.co/cODjOqip9s ...