While the short term stock reaction to possible dilutive effect of the debt issuance is understandable, I'm thinking (perhaps hoping) that investors will get that the $750 million is EXACTLY what SoFi stated it would put towards liquidity necessary for a national bank charter. Capitalization is a key factor in getting the charter (see the webpage for "Charters & Licensing" on the web page for the Office of the Comptroller of the Currency."

And the bank charter would be a HUGE win for SoFi. From an June article on the issue: "How a bank charter impacts earnings. In SoFi's investor presentation, it estimated that without a bank charter its adjusted EBITDA (base case) would be $254 million in 2022 but that it would be $447 million with the bank charter. The 76 percent jump in EBITDA due to the bank charter is estimated due to the lower expected cost of capital and increased lending growth. Similarly, the company has estimated the incremental EBITDA until 2025 and the cumulative incremental EBITDA comes out to be $1,005 million until 2025.

Getting the additional $750 million in convertible debt - which SoFi can elect to pay instead of convert - is a clear indication that they'll meet capitalization requirements necessary for a national bank charter. AND they keep all of the ~$2B they got in the SPAC merger.

This is a GOOD thing, people!!!!$SoFi Technologies Inc.(SOFI)$