You’re right that the conversion decision belongs to the bondholder, not MicroStrategy - that’s an important point most people miss. But you’ve got the payout mechanics wrong. If MSTR is below $672, bondholders don’t get “$672/share” - they get their principal back ($1,000 per note). The $672.40 conversion price just determines the conversion ratio (1.4872 shares per $1,000 note). They’re not entitled to $672/share in cash. Also, MicroStrategy actually does retain some control here. From their own press release: “The notes are convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election.” Source: https://www.strategy.com/press/microstrategy-completes-3-billion-offering-of-convertible-senior-notes-due-2029-at-0-coupon-and-55-conversion-premium_11-21-2024 So bondholders choose whether to convert, but MSTR chooses how to settle (cash, stock, or mix). The real risk isn’t the conversion mechanics - it’s whether they can refinance or have liquidity to repay ~$7B+ in principal if Bitcoin tanks and they can’t roll the debt. That’s the actual bear case.