Gerber Slams Saylor's Bitcoin Trading Playbook
Veteran investor Ross Gerber has publicly criticized Michael Saylor and his firm Strategy Inc. (NASDAQ:MSTR), accusing him of putting the entire Bitcoin market at risk through his company's approach.
In an exclusive chat with Benzinga, Gerber stated that Strategy's tactic of selling MSTR at a high premium to buy 'cheaper' Bitcoin worked in the bull market but has started to 'unwind' in the bear market.
Saylor's strategy involved buying Bitcoin at a low price and selling MSTR shares at a higher price, which allowed him to acquire more Bitcoin. However, when the stock trades at a discount, it becomes difficult for Strategy to raise capital by issuing new shares.
This situation has unfolded in recent months as Strategy paused its Bitcoin buying entirely and focused on cleaning up its balance sheet, even offloading some of its BTC holdings to bolster its dollar reserves.