MicroStrategy Drives US Convertible Returns After Bitcoin Rally
- Firm accounts for near-quarter of month’s rally in index
- Investor warns of industry concentration risk for convertibles
The rally in Bitcoin and MicroStrategy’s convertibles can help to revitalize an asset class that is still recovering from a technology stock crash in 2022.
Photographer: Juan Carlos/BloombergThis article is for subscribers only.
MicroStrategy Inc. is powering returns in the $310 billion market for US convertible bonds on the back of Bitcoin’s historic advance.
A 500-member Bloomberg gauge for convertible US debt is headed for its best month this year, with MicroStrategy accounting for almost a quarter of the rally. The February 2027 bonds of the software developer, which owns around $24 billion in Bitcoin, have surged 60 cents on the dollar in November, setting the securities on course for their best month since being issued in 2021.