North Rock Digital founder Hal Press criticized MicroStrategy’s bitcoin acquisition strategy and said that the company will eventually have to sell all of the BTC.
By words Press, this business model is unsustainable and will be a “career failure” for Michael Saylor.
“The idea of taking a software company and using it to acquire bitcoin is so comically stupid that it’s actually pretty funny. It will be so obvious in retrospect,” he said.
The press also noted that this will not happen in the near future and will take at least a few years.
The crypto community is actively discussing the actions of Michael Saylor
Opinion Press caused a mixed reaction among the participants of the crypto community. Some have argued that buying BTC in the near future will bring huge profits to MicroStrategy. Others insisted that the company should have invested the same funds in Ethereum instead.
The Blockchain Center platform has modeled this situation. According to her data, if MicroStrategy were to buy ETH, by now the company would have 3.68 million coins worth $6.883 billion. By comparison, the value of the company’s bitcoins is $3.926 billion.
The company could also earn more than 300,000 ETH worth $561.6 million if it added it to staking.
However, Press believes that buying Ethereum would be just as stupid:
“My point is that the structure is not reasonable. Taking over a public company and then using its leverage to acquire any assets in a way that adds nothing to its core business simply doesn’t make any sense,” he added.
Institutional buy MicroStrategy shares
A few days ago MicroStrategy informed about acquiring another 1,000 BTC worth almost $30 million and said she plans to buy more. The US Securities and Exchange Commission’s financial report indicated that the purchase of the cryptocurrency raised the company’s total reserves in bitcoin to 140,000 coins (~$4 billion at the current rate).
In the meantime, institutional investors are actively buying MicroStrategy shares in order to indirectly gain access to the main cryptocurrency. According to Bitcoin Magazine, Fidelity and Bank of America purchased more than $75 million worth of securities in the first quarter of this year.
MicroStrategy’s MSTR remains one of the most successful stocks in the market, with over 80% year-on-year growth. At the same time, the price dynamics of MSTR repeats the dynamics of Bitcoin.
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