【Bernstein: A Long Debt Maturity for MicroStrategy Can Buffer Bitcoin Volatility】Golden Finance reported that MicroStrategy issued stocks or zero-coupon debt with a small amount of Bitcoin reserves as collateral in order to purchase a large amount of Bitcoin through simple arbitrage. The company announced in October that it plans to raise $42 billion through these methods over the next three years and is accelerating towards this goal. Bernstein analysts believe, "MicroStrategy is playing a Bitcoin leverage game." Analysts state that the longer debt maturity provides the company with some buffer against immediate repayment or Bitcoin price fluctuations. Moreover, even if MicroStrategy has to issue stocks to pay off convertible bonds, the dilution effect of these stocks on the company's equity is also limited." MicroStrategy is increasingly relying on issuing stocks to purchase Bitcoin, but when it chooses convertible bonds, bond purchasers receive the option to convert them into company stocks at a certain price, which is almost equivalent to a call option.

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