MicroStrategy plans to turn to fixed income securities to raise funds for buying Bitcoin

MicroStrategy co-founder and chairman Michael Saylor said that once the current fundraising plan is exhausted, the company will shift from a leveraged Bitcoin proxy scheme to focus more on fixed-income securities to raise funds for purchasing cryptocurrencies. He stated that the company uses regulated exchanges like Coinbase to buy Bitcoin. MicroStrategy's stock price has risen about 500% this year, far exceeding Bitcoin's increase of approximately 150%. Hedge funds have been looking for its fixed-income securities to implement convertible arbitrage strategies - buying bonds and shorting stocks, essentially betting on the volatility of the target stock. This demand drove MicroStrategy to issue $6.2 billion worth of convertible bonds this year.