All articles tagged with #convertible bonds
GameStop's shares dropped over 15% after announcing a $1.75 billion convertible bond offering to fund its bitcoin purchases, following a strategy similar to MicroStrategy, aiming to diversify and hedge risks with cryptocurrencies amid declining revenue and uncertain market reception.
MicroStrategy's stock has surged over 500% this year, driven by CEO Michael Saylor's aggressive Bitcoin acquisitions funded through convertible bond sales. Hedge funds, including Calamos Advisors, are capitalizing on this by engaging in market-neutral arbitrage strategies that leverage the volatility of these bonds. This has made MicroStrategy a hot trade on Wall Street.
MicroStrategy, known for its significant Bitcoin investments, plans a $42 billion fundraising through an at-the-market (ATM) equity offering and new debt securities to purchase more Bitcoin. This move, reminiscent of its past excesses during the dotcom bubble, aims to capitalize on Bitcoin's resurgence, despite potential risks if Bitcoin's value declines. The strategy involves leveraging its stock's premium to Bitcoin holdings and issuing convertible bonds, betting on Bitcoin's appreciation. CEO Michael Saylor's bold Bitcoin predictions further highlight the company's commitment to this strategy.
Alibaba Group Holding is selling up to US$5 billion in convertible bonds to fund share buy-backs, with initial sales expected to raise US$4.5 billion. The offering, Asia's largest-ever convertible bond transaction, was oversubscribed multiple times. The move underscores Alibaba's focus on e-commerce and cloud computing as core businesses, and reflects management's confidence in the company's fundamentals.
Alibaba Group Holding Ltd. has issued $4.5 billion in convertible bonds, marking the largest dollar-denominated sale by an Asian company. The funds will be used for share buybacks and investments in core businesses, including artificial intelligence. The bonds, due 2031, were priced with a 0.5% coupon and a 30% conversion premium, and the deal was significantly oversubscribed. This move comes as Alibaba seeks to capitalize on favorable financing conditions and a rally in its shares, while also addressing market share losses in its core and cloud businesses.
Alibaba Group Holding Ltd. has issued a record $4.5 billion in convertible bonds to fund share buybacks and invest in areas like artificial intelligence. The bonds, due 2031, were priced with a 0.5% coupon and a 30% conversion premium, and were six times oversubscribed. This move allows Alibaba to take advantage of low financing costs and a rally in its shares, while signaling that the company views its stock as undervalued. The funds will also support Alibaba's core businesses and cloud services, which have faced market share losses due to regulatory crackdowns and internal challenges.
Alibaba's Hong Kong-listed shares dropped over 5% following reports of a potential $5 billion convertible bond sale, later confirmed at $4.5 billion. The proceeds will be used to repurchase American depositary shares. This move follows a challenging year for Alibaba, marked by a significant profit decline and corporate restructuring. The company aims to boost its core e-commerce sector and expand in AI and cloud services.
MicroStrategy, a software firm, has announced its second offering of $500 million in convertible notes in less than 10 days to increase its exposure to bitcoin, following a $600 million private offering earlier in March. The company's stock dropped 8% after hitting a 24-year high, while bitcoin reached a record high of $73,803. MicroStrategy has been using convertible offerings and stock offerings to invest in bitcoin, amassing a total of 205,000 bitcoins as of March 10, making it the largest corporate holder of the cryptocurrency.
SoFi, Albemarle, and MicroStrategy have all seen their stock prices fall after announcing plans to issue convertible bonds, with Albemarle aiming to raise $1.75 billion, SoFi $750 million, and MicroStrategy $600 million through these offerings. The increase in convertible bond deals in the past 24 hours has totaled more than $5 billion, leading to concerns about dilution of existing shareholders' value due to the potential conversion of bonds into shares. The companies plan to use the raised funds for various purposes, including financing lithium mining operations for Albemarle and potentially purchasing more Bitcoin for MicroStrategy.
Electric vehicle startup Fisker Inc has raised $150 million from an existing institutional investor through the issuance of convertible bonds, with an additional $550 million in funding available. The company plans to use the proceeds to increase deliveries of its flagship Ocean sports utility vehicle. This investment follows a previous convertible notes offering of $340 million in July.
Nikola Corp's stock slid 4% in premarket trade after the company announced plans to offer $325 million in senior convertible bonds. The initial sale of $125 million is expected to close on Monday, with net cash proceeds of about $124.5 million. The stock has fallen 9% year-to-date, while the S&P 500 has gained 13.8%.
Atari has announced its acquisition of Night Dive Studios, a game development and publishing company based in Vancouver, Washington, USA, for an initial consideration of $10 million, half in cash and half in Atari shares. The acquisition is expected to be completed in April 2023. In addition, Atari intends to proceed with a €30 million bond issue convertible into new shares of Atari to meet its capital needs in the context of the implementation of its new growth strategy and refinancing of its debt.