According to Odaily Planet Daily, Anthony Pompliano, founder of Professional Capital Management, analyzed MicroStrategy's method of purchasing Bitcoin using convertible bonds. The company sold future equity at a 55% premium to increase its Bitcoin holdings.
Pompliano pointed out that this approach is mathematically sound, but warned investors to be aware of potential risks. A report from IntoTheBlock highlighted four major risks associated with MicroStrategy's aggressive Bitcoin strategy, and although the probabilities are low, investors need to consider extreme scenarios.
