Part 8/10:
Despite the aggressive approach yielding significant benefits thus far, there are inherent risks tied to leverage. If Bitcoin's price experiences drastic declines, MicroStrategy's valuation could also suffer dramatically. It becomes crucial for investors to recognize that while gains through convertible bonds can be substantial, they also amplify losses when the market shifts adversely.
In addition, the potential for liquidation risk exists should Bitcoin prices fall excessively. Although convertible bondholders do not have a lien directly on Bitcoin assets, the overall implications of MicroStrategy's financial strategy can influence market perceptions of its viability.