Overview

• MicroStrategy's stock has surged over 490% in 2024, driven by co-founder Michael Saylor's Bitcoin-focused strategy.
• The company has issued $6 billion in convertible notes this year to fund its Bitcoin holdings, now valued at approximately $40 billion.
• Hedge funds, including Calamos Advisors and Millennium Management, are capitalizing on MicroStrategy's stock volatility through convertible arbitrage strategies.
• MicroStrategy's stock exhibits significant volatility, with average daily movements of 5.2%, compared to 0.6% for the S&P 500.
• While Bitcoin recently surpassed $100,000, critics caution that MicroStrategy's approach carries high risks for shareholders if the market turns.