(Bloomberg) -- MicroStrategy Inc. is powering returns in the $310 billion market for US convertible bonds on the back of Bitcoin’s historic advance.

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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.

Convertible bonds are hybrid securities that usually offer investors steady interest income and issuers the option to swap the debt for stock, typically when the note matures. For MicroStrategy, Bitcoin’s rally and a recent $2 billion purchase of new tokens haven’t only boosted its balance sheet but also made the lure of conversion more attractive.

The company’s shares have jumped 46% this month, extending 2024’s gains to more than 460%. Bitcoin scaled new highs during the same period over the prospect of a crypto-friendly administration under US President-elect Donald Trump.

MicroStrategy’s rise along with Bitcoin “is certainly having an impact on the convertible bond market,” said Dorian Carrell, a portfolio manager at Schroder Investment Management. “The recent returns have been stellar.”

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. The notes of other crypto-related companies such as Coinbase Inc. and Core Scientific Inc. have also risen.

MicroStrategy intends to issue $21 billion of fixed-income securities to help finance Bitcoin purchases. So far, it has focused solely on the convertible bond market.

To be sure, Schroders’ Carrell warned that a surge in issuance due to stronger cryptocurrency prices could lead to “industry concentration,” referring to the risk of the market being too closely tied to the vagaries of a particular sector, in this case crypto. This could risk a repeat of 2022’s wild swings following a splurge in issuance by technology companies in the preceding years.

“The increase in issuance by crypto companies forces us all to build a view on this sector,” said Pierre-Henri de Monts de Savasse, a portfolio manager at RBC BlueBay Asset Management. “Obviously it’s a very volatile sector, but also a sector that has performed very well.”