【Bernstein: MicroStrategy's long debt duration can buffer the impact of Bitcoin volatility】Golden Finance reports that MicroStrategy issued stocks or zero-coupon debt using a small amount of Bitcoin reserves as collateral to purchase a large amount of Bitcoin through simple arbitrage. The company announced in October that it plans to raise $42 billion over three years using these methods and is accelerating towards this goal. Bernstein analysts believe, "What MicroStrategy is doing is a Bitcoin leverage game." The analysts noted that the longer debt duration provides the company with some buffer against immediate repayment or Bitcoin price fluctuations. Additionally, even if MicroStrategy has to issue stocks to repay convertible bonds, the dilution effect of these stocks on the company’s equity is also limited. "MicroStrategy is increasingly relying on issuing stocks to buy Bitcoin, but when it opts for convertible bonds, bond purchasers have the option to convert them into company stocks at a certain price, which is almost equivalent to a call option.

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