MicroStrategy's convertible-note bitcoin machine (2020–2025)
Software firm MicroStrategy, led by Michael Saylor, sold billions in low- and zero-coupon convertible notes to buy bitcoin. As its stock climbed, some notes converted into equity instead of cash, and the company redeemed or exchanged others early.
The strategy turned a slow-growth software company into a leveraged bitcoin proxy, with the stock tracking the coin's price.
It became the template for public companies funding crypto treasuries with convertible debt, copied across the market.
GameStop borrowed the same playbook in 2025. Its 2026 swap is the same move MicroStrategy used: turning convertible debt into stock instead of paying cash.
