Bitcoin’s surge past $103,000 triggered a significant increase in MicroStrategy (MSTR) shares, which have gained over 500% this year. On Wednesday, MSTR shares exceeded the $400 mark again. Hedge funds are developing arbitrage strategies to capitalize on the stock’s high volatility.
Hedge Funds Capitalize on MicroStrategy Opportunities
MicroStrategy’s $6 billion convertible bond issuance has captured the attention of hedge funds. Eli Pars, an investment manager at Calamos Advisors LLC, is utilizing the bonds with market-neutral arbitrage strategies to profit from Bitcoin’s fluctuations. Pars noted, “Convertibles are a way for issuers to monetize stock volatility, and MicroStrategy is an extreme example of this.” The company’s bond issuances this year have reached a global peak.
Calamos currently holds over $130 million in MicroStrategy bonds. The firm is attempting to enhance its returns through long positions and arbitrage methods. As Bitcoin 
$102,493 prices exceed $100,000, the company’s bonds have reached a market value of $40 billio...
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