MicroStrategy seeks to establish "intelligent leverage", planning to turn to fixed income securities for fundraising to purchase Bitcoin

MicroStrategy's co-founder and chairman, Michael Saylor, stated that once the current fundraising plan is exhausted, the company will shift from a leveraged Bitcoin proxy scheme to focusing more on fixed-income securities to raise funds for purchasing cryptocurrencies. When asked how he expects to fund future cryptocurrency purchases, Saylor expressed this preference in an interview. So far, MicroStrategy has used a combination of new shares and convertible bond sales to provide funding for purchases, which have yielded returns for shareholders as their stock rose to prices where they could be converted into shares.

Saylor said: "We have $7.2 billion in convertible bonds, but essentially $4 billion of them are equity; they trade through execution prices and bullish prices with their delta being about 100%, looking like equity; we hope to come back and establish smarter leverage for the benefit of our common shareholders."

He indicated that the company uses regulated exchanges such as Coinbase to purchase Bitcoin. MicroStrategy's share price has risen by approximately 500% this year, far exceeding Bitcoin's increase of around 150%. Hedge funds have been seeking its fixed-income securities in order implement convertible arbitrage strategies - buying bonds and shorting stocks - essentially betting on the volatility of target stocks. This demand drove MicroStrategy's issuance of $6.2 billion worth of convertible bonds this year.