According to BlockBeats news on December 19, Bloomberg reported that MicroStrategy co-founder and chairman Michael Saylor stated that once the current fundraising plan is exhausted, the company will shift from a leveraged Bitcoin proxy plan to a more focused strategy on fixed-income securities to raise funds for cryptocurrency purchases.
When asked how he expects to fund future cryptocurrency purchases, Saylor expressed this preference in an interview. So far, MicroStrategy has utilized a combination of new stock and convertible bond sales to fund purchases, the latter of which has already provided returns to shareholders as its stock has risen to a price that can be exchanged for shares.
Saylor stated: "We have $7.2 billion in convertible bonds, but $4 billion of that is essentially equity, they trade through exercise prices and call prices, their delta is about 100%, looking like equity, and we want to go back and build smarter leverage to benefit our common shareholders."
Hedge funds have been seeking fixed-income securities to implement convertible arbitrage strategies—buying bonds and shorting stocks, essentially betting on the volatility of the underlying stock. This demand has driven MicroStrategy to issue $6.2 billion worth of convertible bonds this year.