You're thinking about it wrong mate.
What matters to them is conversion price vs. selling price. That's all that matters. Market price with support can be taken as a proxy for selling price. Actual conversion price doesn't matter because they aren't holding onto the shares -so they don't actually care about the number of shares they get. They just care about the % spread in what they convert at vs what they sell at.
They convert at the average of the lowest 2 day VWAP in the preceding 5 day period. So they want a RISING price as they go to convert - that way the market price (selling price) is higher than what they convert at.
For example:
Falling price:
Column 1 Column 2 0 Day 1 0.0240 1 Day 2 0.0230 2 Day 3 0.0220 3 Day 4 0.0210 4 Day 5 0.0200
They convert at the average of .021 and .02, being .0205 -- and sell into a market price of .02 for a loss on sale of 2.4%
Rising price:
Column 1 Column 2 0 Day 1 0.0200 1 Day 2 0.0210 2 Day 3 0.0220 3 Day 4 0.0230 4 Day 5 0.0240
They convert at the average of .021 and .02, being .0205 -- and sell into a market price of .024 for a gain on sale of 17%
As you can see - they want a RISING price leading into conversion. If they were sitting on shares and holding them long term - then yea, maybe they'd want a falling price to get more shares. But they aren't - they are converting and immediately dumping - so share count doesn't matter - only conversion price vs. selling price.
(this example of course ignores the interest component of the deal [which doesn't matter as it is a fixed $ amount] - and the rounding component on the conversion price)
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