Micro Strategy's stock could face a significant decline (around 34% within a year) and potential delisting, similar to companies with 'floorless convertibles' in the early 2000s, due to its convertible notes structure.
"In a study published in 2001, the SEC reviewed hundreds of these cases, and what they found was that on average, investors who bought the stocks of these companies lost about 34% of their value within one year. And this happened during a bull market where stocks were going up. By the end of it, about 85% of those companies had negative returns after creating their toxic debt and about half of them didn't survive. 48% of those companies were delisted. And I think this has some parallels because Micro Strategy does have several billion dollar of convertible notes."
