The company cannot used their stock as collateral without issuing new shares (executives that may not be the case depending on their insider trading policy but that wouldn’t benefit the company). Issuing new shares would simply dilute existing shareholders, especially if they did it without raising capital through a secondary offering, which at least that would in theory would at least keep their EV/share the same, although those typically put at least temporary downward pressure on the stock.
Don’t know if I agree with that. The stock price gives them a new market cap.. that market cap can be used as justification for borrowing.
Of course the bank would have to be beyond foolish to lend, since everyone breathing knows this is goi f to crash back hard once all the short term short contracts have covered their positions