In over 25 public companies from GSX Techedu and Tesla to MicroStrategy, there is a sudden wave of companies raising capital through convertible bond structures and new stock issuance. Why now, why so many at once?
Could this be a way of them raking in the last bit of juice from these euphoric capital markets before the sun sets? Absolute milking of capital markets, yet no value produced. Pretty soon a lot more of these tech companies will be using only their stock as collateral for loans, employee salary and whatnot. This is incredibly reminiscent of 1999-2000.
“GSX Announces Private Placement Financing of US$ 870 Million”
“Tesla’s $5B stock offering taps skyrocketing value”
“MicroStrategy to Raise $400 Million to Buy Even More Bitcoin”
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.