What’s with all this sudden financing?

by GammaRisk

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”

finance.yahoo.com/news/gsx-announces-private-placement-financing-080000439.html

We are primarily funded by readers. Please subscribe and donate to support us!

“Tesla’s $5B stock offering taps skyrocketing value”

finance.yahoo.com/news/teslas-5b-stock-offering-taps-130948237.html

“MicroStrategy to Raise $400 Million to Buy Even More Bitcoin”

finance.yahoo.com/news/microstrategy-raise-400-million-buy-220017861.html

 

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.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.