Odaily Planet Daily News: Interactive Brokers Chief Strategist Steve Sosnick pointed out last week that MicroStrategy's Michael Saylor's strategy is to issue convertible bonds and use the proceeds to buy Bitcoin, which is essentially the definition of leveraged trading—borrowing money to purchase financial assets. This approach is very effective when the price of the asset moves in your favor, and Bitcoin has performed remarkably well. However, if it moves in the opposite direction, this approach can collapse in a nasty way. Steve Sosnick emphasized that MicroStrategy benefits from a 'self-fulfilling feedback loop.' It buys more Bitcoin, helping to push the price up, then sells more debt and equity to buy even more Bitcoin, further driving up the price. But such things never last forever, and they often end badly—the question is when? The short-term answer seems to be not yet.

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