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Bilibili's $700 million convertible offering puts dilution risk on the table

9/4/2026

A $700 million convertible debt offering from Bilibili is a capital markets move with a complication built in.

Convertible debt pairs near-term interest servicing with a latent equity claim, and the actual cost to existing shareholders only becomes clear when the offering's terms emerge.

The case for the structure is that convertibles typically price at lower coupon rates than straight bonds.

For a company that would rather not issue straight equity at current prices, a convert can look like a reasonable trade.