For companies like MicroStrategy, convertible senior notes provide low-interest financing and flexible capital without diluting shareholders.
Convertible senior notes are hybrid debt instruments companies use to raise capital without immediate dilution while giving investors the opportunity to convert debt into equity under favorable conditions.
To simplify, a convertible senior note is a type of debt security (loan) that you (as an investor) can convert into shares of the issuing company’s common stock. But you might be wondering what “senior” means here.
