Gerber Warns Saylor's Leveraged Bitcoin Model Could Trigger Selloff

Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, has expressed skepticism about Michael Saylor's strategy for accumulating Bitcoin. According to Gerber, Strategy Inc.'s (NASDAQ: MSTR) approach of selling equity to fund Bitcoin purchases is 'crazy bad math' for investors.

Gerber argued that investors are buying $100 worth of Bitcoin at a premium price of $200. He also warned that if the periodic hard corrections in Bitcoin force Strategy into selling its debt-funded structure, it could lead to a sharp selloff in the cryptocurrency.

Strategy has countered this criticism by stating that their shift towards perpetual preferred stock insulates them from forced liquidations even in an 80% drawdown. The company holds over $72 billion worth of Bitcoin, but its stock has lagged behind the price performance of Bitcoin itself.