Seems like a lot of people had the same idea as me:
Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...
I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.
Buy 2 shares of X for 0.6 BTC, trade them for 1 share of DMC and sell them for slightly less than 1 BTC...
I'm not really sure if you can keep up this model much longer without seriously hurting your IPO income.
I've recently answered this for someone else, so I might as well repeat it here.
Some people are viewing this premium as strictly "buy DMC for 2/3rds the cost", which is not entirely true. Up front, yes, you buy the DMC shares for that, but you give up two short term abilities: dividends (they are cut in half as per the 50% dividend/50% growth agreement in the contract), and the ability to sell (there is not a huge demand for DMC shares yet as the company is still new). If you factor in all the "lost" dividends until DMC dividends increase past what you would have originally gotten from the original bonds, it evens out in the short term.
Also, there is this other issue where if they keep buying shares to sell to me, the effective premium I paid/pay on past/future shares goes down because value increase. Not that I'm complaining, mind you, it'd help everybody in the Bitcoin world if bond prices started rising.
Still, theres a fair bit to go on that. If people want to go buy 1000 shares of something right now and trade me, it might not effect some of the bonds too much and still be worth it for them and still worth it for me.
