Volatility: Fuel for the Engine

Volatility is more than just price swings – it's the heartbeat of speculative markets, powering opportunities for outsized returns (and sometimes outsized losses). In the context of MicroStrategy, volatility helps drive a feedback loop where both the convertibles and underlying asset feed off each other. This chapter explores how volatility plays into convertible pricing, how MicroStrategy leveraged it, and why it's central to understanding leveraged treasury protocols like MegaStrategy.