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 program to a more focused approach on fixed-income securities to raise funds for purchasing cryptocurrency.
When asked how he expects to fund future cryptocurrency purchases, Saylor expressed this preference in an interview. So far, MicroStrategy has adopted a combination of new stock and convertible bond sales to fund the purchases, which has already yielded returns for shareholders as its stock has risen to a price redeemable for shares.
Saylor stated, "We have $7.2 billion in convertible bonds, but $4 billion of that is essentially equity, and they trade via exercise price and strike price with a delta of about 100%, looking like equity. We want to go back and establish smarter leverage to benefit our common stock shareholders."
Hedge funds have been seeking their 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 in convertible bonds this year.