Gerber Warns Saylor's MSTR Strategy 'Could Collapse' as Bitcoin Faces Existential Threat
Veteran investor Ross Gerber has criticized Michael Saylor's strategy at Strategy Inc. (NASDAQ: MSTR), accusing him of putting the entire Bitcoin market at risk.
Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, says Saylor's approach of selling MSTR shares to buy cheaper Bitcoin worked well during bull markets but has backfired in bearish conditions.
Strategy's strategy involves issuing new shares when its stock trades at a premium to the value of its Bitcoin holdings. However, this has become dilutive as the market turned negative, forcing Strategy to pause Bitcoin purchases and even sell some of its BTC holdings to rebuild dollar reserves.
Gerber warns that if Bitcoin fails to reverse its price movement and trend higher, Saylor's operation faces an existential threat, saying 'it's just a matter of time till that entire thing collapses.'