MicroStrategy Chairman Michael Saylor Eyes' Intelligent Leverage' With Bitcoin Purchases

MicroStrategy Inc. MSTR is doubling down on its strategy to maximize shareholder value through what Saylor calls “intelligent leverage.”

The software-turned-Bitcoin BTC/USD proxy firm has become a major player in the cryptocurrency market, attracting significant investor attention due to its bold approach to Bitcoin accumulation.

"We have $7.2 billion in convertibles, with $4 billion effectively equity through the strike and call price. They are trading with a delta of nearly 100%, resembling equity," Saylor explained during a Bloomberg Television interview on Wednesday. "We aim to develop more intelligent leverage for the benefit of our common stock shareholders."

MicroStrategy has been at the forefront of an unconventional capital-raising campaign to acquire Bitcoin, announcing multibillion-dollar purchases of the cryptocurrency every Monday for the past six weeks.

This aggressive strategy has catapulted the company's stock price by nearly 500% this year, significantly outpacing Bitcoin's 150% gains over the same period.

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The company's market capitalization has surged to over $90 billion, paving the way for its inclusion in the Nasdaq 100 Index by the end of trading Friday.

This inclusion is expected to trigger approximately $2 billion in purchases by funds that track the index, according to Bloomberg Intelligence.

MicroStrategy's approach has also drawn interest from hedge funds engaging in convertible arbitrage strategies.

These involve buying the company's fixed-income securities while shorting its shares, capitalizing on the stock's volatility.

This demand has enabled MicroStrategy to issue $6.2 billion worth of convertible bonds this year alone.

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