This podcast explores MicroStrategy's approach of using convertible debt to purchase Bitcoin, which the company calls "intelligent leverage." The speaker argues that this term is misleading, providing a mathematical breakdown that shows how this strategy boosts asset value per share for early investors while significantly disadvantaging later ones. Essentially, it depends on continually raising larger sums of money to create the illusion of rising asset value per share, resembling a Ponzi scheme, even with a public market for shares and bonds. The speaker emphasizes the unsustainable nature of this model and raises concerns about its long-term viability.
