Class A shares are authorized to increase from 330 million shares to 10.3 billion, preferred stock from 5 million to 1 billion.
Coinbase Would Delist Stablecoin Tether if Required by Law, CEO Says Waiting for the day this happens. If(when) there is a bank run on Tether we will quickly realize there is no money and bitcoin crashes -90% overnight (the USDT is backed with Bitcoin and to maintain the peg they would be selling bitcoins, crashing the price in the process) " U.S. senators have introduced two bills to regulate stablecoins in the U.S. that would ban the use of offshore, unregulated versions such as tether, though neither has yet advanced. Armstrong said he expected future U.S. legislation to demand stablecoin issuers hold 100% of their reserves in U.S. Treasury bonds and to periodically pass audits. Tether keeps most of its reserves in Treasurys, but also backs its currency with holdings of gold, bitcoin and loans. Tether, whose holding company is registered in the British Virgin Islands, has never released fully audited financials. "
@johnarb If a company issues new shares at market value (i.e., at the same price the stock is currently trading for), the impact on outstanding options is generally less significant compared to when shares are issued at a discount. However, there can still be an effect, primarily because the number of shares outstanding has increased, which can cause some dilution. Here's how this situation typically plays out: 1. Stock Price Behavior No Immediate Drop in Price Due to Discounting: If the shares are issued at market value (e.g., the company issues 100,000 new shares when the stock is trading at $100), the stock price may not drop immediately because the shares are being sold at the same price as the market value. Market Reaction: Even though the shares are issued at market value, the market might still adjust the stock price slightly, especially if the offering increases the number of shares outstanding significantly. The price could experience a slight decrease due to the increased supply of shares, but typically, this decline would be smaller than in a case where shares are issued at a discount. 2. Effect on the Strike Price of Call Options No Adjustment in Strike Price: In most cases, when a company issues shares at market value, the strike price of existing options does not automatically adjust. This is because the issuance is not seen as a dilutive event that alters the value of the existing shares significantly, since the new shares are sold at the same price. Why No Adjustment: The primary reason the strike price doesn't typically adjust in this case is that the new shares are being offered at the same price as the market value. Since there is no discount involved, the intrinsic value of the existing options isn’t directly affected by the issuance of the new shares. 3. Impact on Option Pricing (Market Price and Volatility) Stock Price Impact: If the stock price does decline slightly due to the increased number of shares outstanding, the intrinsic value of call options might decrease, especially if the stock price falls below the strike price. However, this is a market-driven reaction and not a forced adjustment from the company or the options exchange. Option Pricing: The implied volatility of the stock might change, especially if the market reacts with uncertainty to the increase in shares. This could affect the time value of the option. If volatility increases, the value of the option might rise, even if the stock price falls slightly. Gamma and Delta: The delta of the option (the sensitivity to changes in the stock price) will be impacted by the stock price movement post-offering. If the stock price drops, the option’s delta may decrease because the likelihood of the stock price reaching the strike price becomes lower. 4. Example Scenario Initial Scenario: Stock price = $100 You hold a call option with a $100 strike price, expiring in one month, and it covers 100 shares. Company Announces New Share Issuance: The company decides to issue 100,000 new shares at $100 per share (the current market price). The total number of shares outstanding increases, but the stock price might only decline slightly due to dilution (e.g., a small drop to $99 or $98). Impact on the Option: Strike Price: The strike price remains $100 because the new shares were issued at the current market price, so no adjustment is necessary. Stock Price: The stock price may drop slightly (e.g., to $99), which could reduce the intrinsic value of your call option, making it slightly less valuable. However, the option is still at-the-money (or close), and the strike price remains valid. Implied Volatility: If the market reacts with higher volatility due to the increase in share supply, the time value of the option may increase, partially offsetting the decrease in intrinsic value from the stock price drop. 5. Summary of Effects No Automatic Strike Price Adjustment: When a company issues shares at market value, the strike price of existing options generally remains unchanged. Potential for Small Stock Price Drop: The stock price might drop slightly due to the increased number of shares, but it will usually remain near the market price. Effect on Option Value: The value of a call option might decrease slightly due to the stock price drop, but the time value could increase if volatility rises. The overall impact on the option price depends on how the market reacts to the new shares. In essence, when shares are issued at market value, there is less impact on the strike price of options, but there can still be a slight dilution effect on the stock price. The primary changes will occur in the market price of the stock, which can affect the intrinsic value and implied volatility of the options.
Is it over ponzi schemers? Larry Fink calling for $700K Bitcoin on the television. Is this what a top looks like?
"When yur name is Teflon Don, they let you do anything, you can even grab the sheeple by the testicles and stick your finger up their ass"