The last reported sale price of Twitter's common stock on March 1, 2021 was $77.63 per share. The convertible note hedge transactions are expected generally to reduce the potential dilution to Twitter's common stock upon any conversion of notes and/or offset the cash payments Twitter is required to make in excess of the principal amount of converted notes in the event that the market price of Twitter's common stock is greater than the strike price of the convertible note hedge transactions, which initially corresponds to the initial conversion price of the notes. Twitter also entered into privately negotiated warrant transactions with the hedge counterparties.