Bilibili

Bilibili launched a $500M convertible note offering (expandable to $575M) with a Delta Offering strategy to hedge investor positions using borrowed shares, alongside a $100M share buyback. The proceeds will fund content expansion and user growth, leveraging convertible debt’s lower rates while delaying equity dilution. The share repurchase signals management confidence, while the Delta mechanism mitigates near-term stock pressure. Risks include potential 3-5% future shareholder dilution and increased leverage. The structured approach balances capital acquisition with market stability amidst China’s tightening tech fundraising regulations, targeting competition in Gen-Z-focused video platforms.