According to a report by Business Insider on December 24, the chief strategist of Interactive Brokers, Steve Sosnick, pointed out that MicroStrategy is currently in a 'self-fulfilling feedback loop': raising prices by issuing convertible bonds to purchase Bitcoin, and then continuing to issue bonds to expand investments. Although the current paper profit is about $41 billion, considering the company's software main business profits are unstable and the scale of convertible bonds has exceeded $7 billion, this strategy carries significant risks. Sosnick emphasized that such investment models are often difficult to sustain, and the key lies in when the turning point is reached.
However, Anthony Scaramucci, founder of the hedge fund SkyBridge Capital, believes that MicroStrategy's debt structure is primarily long-term debt and adopts a rolling issuance approach. Unless there is a sustained systematic collapse in the Bitcoin market for 6-7 years, the company's investment strategy is sustainable.
