The Defiance Daily Target 2X Long MSTR ETF (MSTX) soared a staggering 12.01% in Friday's pre-market session, reflecting the frenzy surrounding MicroStrategy Inc's leveraged bet on Bitcoin.

MicroStrategy, the enterprise software company whose stock MSTX is designed to track with 2x leverage, has been issuing convertible debt to fund aggressive purchases of Bitcoin. This strategy, dubbed an "infinite money glitch" by online traders, has allowed MicroStrategy to accumulate over 380,000 BTC, fueling a massive surge in both Bitcoin's price and MicroStrategy's stock, which in turn propelled the rally in MSTX.

However, analysts have raised concerns about the sustainability of this leveraged approach, warning that it is alarmingly reminiscent of past bubbles that ended disastrously. The strategy's reliance on Bitcoin's historic volatility, with multiple 50%+ drawdowns, as well as the reduced liquidity from MicroStrategy's Bitcoin hoarding, and the astronomical 124% premium that MicroStrategy stock trades at compared to the value of its Bitcoin holdings alone, have all been cited as potential risks.