MicroStrategy to turn to fixed-income securities to raise funds for Bitcoin purchases

Michael Saylor, co-founder and chairman of MicroStrategy, stated that once the current Bitcoin leverage agent plan runs out of funds, the company will shift its focus to fixed income securities to raise funds to purchase cryptocurrencies. He stated that the company uses regulated exchanges such as Coinbase to purchase Bitcoin. MicroStrategy's stock price has risen by about 500% this year, far exceeding Bitcoin's rise of about 150%.

Hedge funds have been looking for 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.