Interactive Brokers chief strategist Steve Sosnick noted last week that MicroStrategy's Michael Saylor's strategy of issuing convertible bonds and using the proceeds to buy Bitcoin is effectively the definition of leveraged trading - borrowing money to buy financial assets. This works great when the price of an asset moves in your favor, and Bitcoin has done quite well. But if it moves in the opposite direction, this approach breaks down in a nasty way. Steve Sosnick stressed that MicroStrategy benefited from a "self-fulfilling feedback loop." It bought more Bitcoin, helping to drive up the price, and then sold more debt and equity to buy more Bitcoin, driving up the price even more. But these kinds of things never last forever and tend to end badly - the question is when? The short-term answer seems to be that time is not here yet. (Business Insider)