MicroStrategy’s purchase of bitcoin may have negative consequences — expert opinion

North Rock Digital founder Hal Press has criticized MicroStrategy’s strategy to acquire the flagship cryptocurrency. In his opinion, the company’s current business model is unsustainable and will eventually become a «career ender» for the firm’s founder Сейлор" href="https://noworries.media/biography/majkl-dzh-sejlor/" data-bio-id="3672">Michael Saylor.

It’s not going to happen anytime soon (several years minimum IMO), but eventually every single one of Saylor’s coins will need to be sold. When the time eventually comes it will be a career making short. https://t.co/dtOOqRHQPJ

— Hal Press (@NorthRockLP) April 7, 2023

«It's not going to happen anytime soon (at least a few years in my opinion), but eventually every single Sailor coin will need to be sold,» Press wrote.

The founder of North Rock Digital also called it «a comically stupid idea to take a software company and use it to launch a bitcoin hoarding strategy.» According to him, it is not about the asset, but about the «structure».

«This is not really a comment about bitcoin. If he [Сейлор] had done this to buy ETH, it would have been just as stupid. That’s not to say that Ethereum wouldn’t be profitable too, there’s a chance it would be. My opinion is based on the fact that the business model itself is stupid,» Press added.

This genuinely isn’t a comment about Bitcoin. If he did it to buy ETH it would be just as silly IMO. It’s not to say that it won’t be profitable either, there is a chance it will be. My point is that the structure is not sensible. Hijacking a public company and then levering it … t.co/V6qvO1H1r4

— Hal Press (@NorthRockLP) April 8, 2023

Press’s opinion provoked a mixed reaction from the crypto community. Some argued that the purchase of BTC would soon bring MicroStrategy a huge profit. Others insisted that the company should have invested the same funds in Ethereum.

However, there was a crypto enthusiast who criticized Pres’s position. «So this is your argument in favor of not owning BTC? That you might have to sell it in 30 years? Is that weak?» he wrote.

So is that your argument for not owning BTC? That it might need to be sold in 30 years? Weak

— Crypto Rogue Trader (@CRogueTrader) April 8, 2023

As a reminder, in November 2022, amid the FTX crash and bitcoin’s fall below $ 16,000, Saylor confirmed MicroStrategy’s course to further purchase the flagship crypto market. In March, the company purchased 6455 BTC for $ 150 million, and this month MicroStrategy bought 1045 BTC for $ 29.3 million.