Golden Finance reports that MicroStrategy uses a small amount of Bitcoin reserves as collateral to issue stocks or zero-coupon debt in order to purchase large amounts of Bitcoin through simple arbitrage. The company announced in October that it plans to use these methods to raise $42 billion in funds within three years. , and are accelerating towards this goal. Bernstein analysts believe that "MicroStrategy is doing a Bitcoin leverage play." Analysts say the longer debt maturity gives the company some cushion against immediate repayments or Bitcoin price fluctuations. Furthermore, even if MicroStrategy had to issue shares to repay the convertible debt, the dilution effect of those shares on the company's capital stock would be limited. “MicroStrategy has increasingly relied on issuing stock to buy Bitcoin, but when it opts for a convertible bond, the bond buyer gets the option to convert it into company stock at a certain price, which is almost equivalent to a call option.