Hayes: Buying Bitcoin ETFs More Rational Than Investing in Strategy
BitMEX co-founder Arthur Hayes has questioned the long-term viability of Strategy (formerly MicroStrategy) as a Bitcoin investment vehicle, suggesting that buying a spot Bitcoin exchange-traded fund (ETF) like IBIT is a more rational choice for stock market investors seeking crypto exposure.
Hayes argued that Strategy's business model, which relies on issuing shares or debt to buy Bitcoin, may no longer work as effectively as it once did. He pointed out that the company's executive chairman, Michael Saylor, faces difficult choices: issuing additional shares, selling Bitcoin holdings, or halting dividend payments.
Hayes noted that MSTR has lost its influence and no longer has a basis to trade at a premium to its Bitcoin holdings. The premium, which historically allowed Strategy to raise capital at favorable terms, has narrowed significantly in recent months.