Saylor described how his firm used both equity and debt markets to generate returns far beyond traditional financial tactics. For example, through a calculated equity arbitrage move, MicroStrategy sold $1.5 billion worth of stock, used $500 million to buy Bitcoin, and eventually repurchased $1.5 billion worth of Bitcoin. The result: a staggering $1 billion gain from the price difference—effectively turning capital markets into a Bitcoin yield engine.
But it doesn’t stop there.
Saylor detailed how they executed a more aggressive version using debt. By issuing $3 billion in convertible bonds backed by just $600 million in Bitcoin (due in five years with 0% interest), they acquired $3 billion worth of Bitcoin immediately. The arbitrage gain from this maneuver was $2.4 billion—realized upfront. Over time, as Bitcoin appreciates (according to Saylor’s belief in its exponential trajectory), the value of the investment could double or even quadruple, vastly amplifying shareholder value without taking on traditional operating risk.
This approach—borrowing at low or zero interest to buy a rapidly appreciating asset—could be viewed as a modern blueprint for corporate balance sheet optimization. If Bitcoin continues its historic growth, Saylor’s playbook may go down as one of the most audacious and lucrative strategies in modern financial history.
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