Part 3/10:
Convertible bonds are primarily priced based on several factors such as interest rates, a company's creditworthiness, the underlying stock's price, and stock price volatility. The latter is vital to MicroStrategy's strategy. The company takes advantage of high volatility in its stock due to its Bitcoin holdings. By issuing convertible bonds at a premium, Saylor effectively uses these instruments to raise substantial capital while simultaneously acquiring more Bitcoin without diluting shareholder value in the traditional sense.