MicroStrategy uses a small amount of Bitcoin reserves as collateral to issue stocks or zero-interest debt in order to buy large amounts of Bitcoin through simple arbitrage. The company announced in October that it plans to use these methods to raise $42 billion in three years and is accelerating towards this goal. Bernstein analysts believe that "MicroStrategy is playing a Bitcoin leverage game." Analysts say that the longer debt term provides the company with some buffer in case of immediate repayment or Bitcoin price fluctuations. In addition, even if MicroStrategy has to issue shares to repay convertible bonds, the dilution effect of these shares on the company's equity is limited. "MicroStrategy increasingly relies on issuing shares to buy Bitcoin, but when it chooses convertible bonds, bond buyers can get the option to convert them into company shares at a certain price, which is almost equivalent to a call option. (foxaraby)